The best overall mortgage is best suited to the specific needs of each. This requires taking into account variables such as depreciation committees, present circumstances, the interest rate applied and the differential of the entity.

Currently, in the Spanish market, there are several types of mortgage: type variable, fixed, mixed and fixed fee.

The most commonly used for home purchase is the variable rate mortgage. The main feature of this is that the interest rate fluctuates during the term of the loan, according to a set of terms that are specified to hire her.
The share of initial interest and monthly payment is usually lower than a fixed rate mortgage. In this case, the interest rate can be adjusted depending on the price of money and thus the share rises or falls.
Another characteristic is that they often ask for longer periods than fixed rate mortgages may be 15, 20.30 years or more.

The fixed rate mortgage maintains a constant interest rate that applies throughout the lifetime of the loan, so that the monthly fee will remain unchanged throughout the period of the loan.
The main advantage is that we know at all times the amount we pay each month, since, rising interest rates will not affect the tax payable.
In our country today, such mortgages are granted for periods not too long, 5 to 10 years maximum, for example in the case of purchase of vehicles or partial housing mortgages.

In the case of mixed-rate mortgages, for an agreed period of time, the loan will be fixed and other variable rate.
This ensures adequate time stability in the years that we have chosen the fixed rate mortgage. There are banks that opt for this type of mortgage and also offer the possibility of alternating every so often. That is, once the period for fixed mortgage rate can again choose between variable or fixed rate.

Finally, the fixed rate mortgage is one in establishing a monthly fee will always be the same throughout the life of the loan. Not to be confused with the fixed rate because, in this case, interest is fixed and calculated as a variable-rate mortgages. The peculiarity is that each month they pay the same fee for all the duration of the loan, which varies is the time of payment. How fees are fixed and the interest rate is variable, the deadlines are extended if interest rates go up and shorten it the interest rates go down.

Source: fotocasa.es 19/03/2009