1. Mortgages based on the interest rate: they are the most common in the market and there are three types:

• Variable: depending on the variation of Euribor, it may be that the quota falls or rises. They have a constant rate and variable rate amortization system.
• Fixed: the interest rate does not change, the monthly fee is always the same, but if the specific conditions are not met, the interest may vary. These mortgages are usually used for long terms.
• Mixed: it is a combination of the previous two, but with the difference that they work like the variable type. The percentage of the interest rate is fixed, with a series of conditions and also with a variable interest rate based on the Euribor.

2. Mortgages according to the target customer:

• Reserved by certain groups: they are reserved to aviation personnel, officials, employees of large companies, etc.
• Aimed at young people: younger than 35 years and get more advantageous conditions.
• Non-residents: or also of second residence. To obtain this type of mortgages require more precise and strict principles. In addition, they require a large amount of savings to cover expenses.

3. Mortgages according to the type of quota:

• Armored fee: the interest is variable, but the fee is fixed so that only the terms can vary. For example, if the interest increases, the terms will increase and not the fee to pay.
• Final fee: a high percentage of the fee is paid in the final installment. We have to bear in mind that this type of mortgage pays more interest since during the loan period interest is added to the final installment.
• Growing share: the fixed percentage each year grows and also the fluctuations of variable interest are added to it.
• Interest Only: in this type the capital itself is not amortized and only the agreed interest is paid. When the loan is completed, the outstanding debt is the same amount as at the beginning.

4. Mortgages according to the type of real estate:

• Bank homes: when the property is awarded by a financial institution.
• Public or private public protection housing.
• Destined to urban or rustic goods.
• For the land: for the financing of urbanizable land.

Now that you have clear the types of mortgages that exist, it will be easier to choose the most suitable for your new home!