Each person is different and has different situation and goals. For this reason when requesting a loan, you must take into account the age and income. What are the types of mortgage loans that exist and which are the ones that best suit each client? We’ll tell you here.
The variable mortgage is one in which the installment changes according to the Euribor. It is currently low, but there is always the possibility that it will increase over the years. For this reason, because of the uncertainty that it entails, it is an option that young people tend to bet on since they usually have forecasts that their salary will improve in the short and medium term, and in the event that the quota increases, they will be able to take charge.
With this type of mortgage loans, which have a fixed interest, you know what will be the monthly installment you are going to pay from the first moment since it will always be the same. Being with a fixed fee, it is a perfect option for those who know that their economic situation will be very similar in the future (usually people who anticipate that their situation will be stable and who do not want to take risks). It is also a good option for those who are going to acquire a second home that will be profitable with rent (a way to ensure that they will have a plus to pay higher fees).
The mixed mortgage combines the advantages of the two mentioned above. During the first years the fee will be fixed (but with a lower price than fixed mortgages) and then it will be variable. It is a good solution for those young people who prefer to pay less for the moment, but predict that if the economy will improve in a few years. It is also an interesting solution for those who plan to move in a short time since it involves a total repayment of the loan.
Now that you know what types of mortgage loans exist and what are the advantages of each, it’s time to think about buying a home, don’t you think? Take a look at all the properties our company CHG has and choose the one that best suits your needs.