標題: What is better fixed or variable mortgage? [打印本頁] 作者: mimmim 時間: 2024-3-10 11:57 標題: What is better fixed or variable mortgage? Applying for a mortgage is one of the most important procedures we will carry out throughout our lives. It is a long and tedious process and that is why it is advisable to have experts to advise you and help you with the question of what is better fixed or variable mortgage?
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What is better fixed or variable mortgage?
We can tell you that there is no specific answer as to what is better fixed or variable mortgage , since it will always depend on our solvency profile and our financing interests. Both mortgages with fixed and variable interest rates have their advantages and disadvantages that must be considered to make a good decision, since it will directly impact the interest you will pay over the life of the mortgage loan.
If we talk about which mortgage is cheaper, it will depend on many factors and, among them, the market. Currently, the Euribor is at negative values , so the interests are much lower, so at this time the answer would be: a variable mortgage. But you Chinese Overseas America Number Data don't have to rely solely on this data, you have to assess in the long term what interests you most and what risk you want to take.
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Variable rate mortgage
A mortgage with variable interest will always have a higher risk than a fixed one, but depending on what type of financing you are looking for, it may be a better option. The clearest case is in mortgages with very low repayment terms of approximately 15 years .
If you plan to repay the mortgage in less than 15 years, as the Euribor currently stands, you will pay much less with a mortgage with variable interest. But it is very important that you have an income and an economy that allows you to pay the mortgage in case the Euribor rises suddenly.
fixed or variable mortgage
Advantages and risks
Variable mortgages , as long as they are for a few years, are cheaper. This is because the interests are much lower because the most common thing is that they are referenced to the Euribor, which is negative.
It is very important to emphasize that for it to be more economical, it has to be within a short period of time, less than 15 years. Even so, some banking entities allow terms of 40 years, when normally they are 30 years. But be careful! Although this means that you will pay lower payments during the loan, in the end we will pay more money in interest.
In addition, there is a risk that interest will begin to rise at any time, especially if we take out a mortgage for more than 15 years.
Advantages:
The Euribor is negative . This represents a cheaper mortgage and is estimated to remain negative for at least five years.
Terms over 40 years . Although as we have seen, it is a double-edged sword: low fees, but more interest.
Disadvantages:
Fluctuations in interests. One of the great risks of a variable mortgage is, without a doubt, the variation in the mortgage payment that depends directly on the reference index. Normally a mortgage review is carried out every 6 or 12 months and there it is established what the installment that you will have to pay during that period will be.
The firsts years. During the first few years of the mortgage, the interest is higher because it is a fixed rate. After a year or, sometimes, two, it is already referenced with the Euribor.
Increase in monthly payments. You may find that the fee suddenly becomes more expensive and you cannot do anything about it. That is why it is so important to have an income that allows you to deal with fluctuations.
