At Jordi Tané de Palafrugell Real Estate, our mission is to provide comprehensive advice to our clients in the real estate field. One of the most important issues when purchasing a home is financing, and in this article, we will address a financing option that has gained popularity in recent years: the mixed mortgage.
What is a mixed mortgage?
The mixed mortgage is a type of mortgage loan that combines characteristics of fixed-rate and variable-rate mortgages. In a mixed mortgage, an initial period is established during which the interest rate is fixed and does not vary, regardless of market fluctuations. Subsequently, the mortgage becomes a variable rate, where the interest rate is adjusted periodically based on a reference index, such as the Euribor.
Operation of the mixed mortgage
The main advantage of a mixed mortgage lies in its ability to offer stability and security during the fixed rate period, protecting the borrower from possible increases in interest rates. At the same time, when the mortgage becomes variable, the borrower can benefit from a decrease in interest rates if the market evolves favourably.
The duration of the fixed-rate period in a mixed mortgage usually ranges from 5 to 15 years, although it is possible to find offers with different terms. After this period, the interest rate becomes variable and is periodically revised according to the chosen reference index, plus a margin set by the financial institution.
Is a mixed mortgage right for you?
The choice of a mixed mortgage will depend on your financial needs and your expectations about the evolution of interest rates in the future. If you are looking for greater stability in the first years of the loan and are willing to take some risk in the long term, a mixed mortgage may be a good option. However, it is essential to compare the conditions and rates offered by different financial institutions to find the offer that best suits your situation.
At Jordi Tané de Palafrugell Real Estate, we are committed to offering you the support and guidance you need to make informed decisions regarding financing. Do not hesitate to contact our team of professionals to obtain more information about mixed mortgages and to explore the financing options available for your next real estate purchase.
