Fixed or variable mortgage: Which is the best option?

Category: Mortgages

When choosing a mortgage is perhaps when you have the most doubts. Fixed or variable? Am I choosing well? Will I save money in the long term? These are just some of the questions that usually come to mind during the process. Well, today at laHome we are going to tell you the characteristics of both options to completely clarify the concepts and help you make the best decision. Here we go:

Fixed Mortgages

• Stability and security. You can know from the beginning the installment that you are going to pay each month without being aware of the Euribor.
• Favorable conditions. The interest rates set by banks in recent times are around 2%, with an average repayment period of 25 years, which sometimes extends above 30.
• High quota. The interest rate is usually higher than that of a variable mortgage and the repayment period is shorter, so the payment to be paid each month is usually more expensive.
• Higher commissions. Fixed mortgages usually have a higher origination fee than variable mortgages.

Variable Mortgages

• Lower interests. In the short term they are cheaper, since today the interests are below 1% because the Euribor is negative.
• Few commissions. They have lower commissions than fixed rate mortgages, in some cases even zero.
• Euribor variations. These variations may lead to instability of the installments and an increase in the monthly installment.
• Initial fixed interest.At the beginning, variable interest is not applied, but rather a fixed interest is applied for a period of time that can reach 24 months.

We hope we have given you the information you needed. Any questions, contact us. Our team is always ready to help you!