A mortgage is a loan in which the home you buy acts as collateral: if the borrower stops paying, the bank can foreclose on the mortgage and take the property to recover the outstanding debt.
Types by interest rate
- Fixed: a constant payment for the entire life of the loan, with no exposure to changes in the Euríbor.
- Variable: payment tied to the Euríbor plus a spread, reviewed periodically.
- Mixed: a fixed rate for the first few years and variable for the rest.
Key elements to compare
When comparing offers, don't look only at the TIN (nominal interest rate): check the TAE (APR), the arrangement fees, any linked insurance the bank requires (life, home), and the terms for early repayment.