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3 types of rates on a mortgage loan: Which one suits you?

Before applying for a mortgage loan, it is important that you know the three types of rates currently handled in the market.

Where do you start to get a mortgage?

The rates that are handled are: variable, mixed and fixed so that you can estimate the cost of the loan and make a better decision when acquiring your assets.

Some people when they are going to start the process of buying their home, pay more attention to factors such as the maximum amount of credit they wish to reach or the percentage of the rate, but do not consider the details of it, which prevents them from having all the information necessary to make a better purchase decision.

Types of rates in a mortgage loan:

1- Fixed rate : the percentage is irremovable throughout the loan. It is usually the highest rates but safer at the same time.

It is the best option for people who want to maintain stability in their loan , who have a regular income, stable, long-term and no major changes .

2- Variable rate: this type of rate can change every certain period, increases or decreases according to the behavior of the economy. It is lower than the fixed rate but implies greater risks.

It is established through a benchmark index which is revised periodically. Accepting this rate is only recommended if you know that your income will increase .

You may be interested in reading: ” In search of income verification flexibility, Our company has a customized solution “

3- Mixed rate: it is a mixture of the two previous ones with which you can pay the loan during the first years with a fixed rate and then with a variable.

So what is the rate that suits you? The answer depends on your income, economic situation, needs and how you want to pay it .

The important thing is that you look for a housing loan that suits your profile and not you to it. Regardless of which one you choose, remember that you will be protected throughout the process.

 

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