Although the interest rate may be higher compared to other types of financial options, it is an aspect that provides many advantages, starting with the fact that, in general, you will know what you are going to pay from beginning to end. The fixed-rate mortgage from EVO Banco may be attractive to you.
Main advantages of fixed-rate mortgages
The most outstanding feature of fixed-rate mortgages is, at the same time, their main advantage.
Precisely for that reason, interest rates are usually a little higher compared to variable-rate mortgages, but it is almost always favorable, especially in mortgages with many years of payment.
Below, we share some of the most outstanding advantages of fixed-rate mortgages:
- Fixed installment: the most outstanding advantage of fixed-rate mortgages, without a doubt, is that, if nothing is changed in the contracted products, the same amount will generally be paid each month until the complete cancellation of the loan.
- Stability: external factors should not affect the change in the installment to be paid each month, so the monthly installments will always be the same and will not suffer any type of variation, if the contracted products do not vary.
- Conditions: the conditions of this type of mortgage are usually considerably favorable and a perfect option for long-term mortgages; in many occasions, for mortgages that can be extended for up to 30 years. It does not matter if one of the interest rate indices in Spain rises, as may be the case with the Euribor, because the amount to be paid cannot vary as it does with variable-rate mortgages and other types of financial resources.
Fixed-rate mortgages are one more of the many financial resources available, and like any resource, it has its advantages and disadvantages, so it is an ideal option for certain types of characteristics or objectives. Hence the importance of processing this type of option through serious and responsible entities, which offer the necessary help to their clients, to offer them the most favorable options.
How to apply for a fixed-rate mortgage?
Without a doubt, the fixed-rate mortgage is a very useful financial resource, and contrary to what one might think, the application process is much simpler than it seems. In addition, by using fixed interest rates, it is much easier to calculate what should be paid over the years.
Of course, depending on the financial institution, the application process may be faster or slower, but in general, it begins with a simple simulation of what the client should pay if they request a certain amount as a loan for a certain time. You can also know the type of interest to be paid, and even a quick comparison with the other loan modalities, including the variable-rate mortgage.
All the above information is key to making a much more responsible and convenient decision, depending on our needs at all times. Of course, in case of any doubt, it is advisable to contact an agent to request more information related to the general conditions.
1 EVO Banco, S.A. Exclusive Conditions EVO Smart Mortgage in all its modalities. Loan agreement with mortgage guarantee on housing or residential property, the conditions of which can be consulted at: https://www.evobanco.com/hipoteca/. It will be necessary to contract an account with EVO that serves as an operational support for the payments corresponding to the mortgage loan and the contracting of a damage insurance that covers the value of the property in favor of the entity, not being mandatory to contract said insurance with any company linked to EVO Banco. The loan will be guaranteed by a mortgage, the amortization system used being the French system with payment of constant monthly installments (the same may vary with the revisions of the interest rate in the modalities of variable or flexible smart mortgage), composed of capital and interest, whose calculation formula is as follows: C = (A x i) / [1-(1+i)-n], being “A” (amount of mortgage pending maturity) “i” (annual interest rate divided by 12) “n” (monthly periods pending maturity). The interest corresponding to the monthly installment is calculated using the formula: I = A x i / t, being “A” (amount of mortgage pending maturity) “i” (annual interest rate) “t” (number of monthly payments in a year). The amortization corresponding to the monthly installment is the difference between the monthly installment and the monthly interest. The holders will respond with all their present and future assets in compliance with the obligations derived from the mortgage loan. The approval of the operation and its conditions will be subject to the analysis of the entity prior presentation of the pertinent and necessary information that we will request to make an adequate evaluation of your solvency. In case of not providing said information correctly or carrying out the necessary verification, the entity will not be able to grant you the mortgage loan. You can consult the prior information sheets in the Notice Board. https://www.evobanco.com/tablon-de-anuncios/. EVO BANCO, S.A., Linked Banking-Insurance Operator supervised by the General Directorate of Insurance and Pension Funds with key number OV-0075. Consult the insurance companies with which EVO BANCO collaborates at https://www.evobanco.com/ayuda/entidades-de-seguros-colaboradoras/.
In the case of the 30-year fixed-rate mortgage, the maximum term to pay for your home will be from 1 to 30 years. The APR includes an appraisal cost that will fluctuate depending on the valuation made by the Appraisal Company of the home, characteristics of the home, an annual cost of home insurance, whose conditions will be subject to approval by the Insurance entity and whose final price will depend on: valuation value for insurance purposes of the mortgaged property, value of content and characteristics of the property; and in the case of subsidized APRs, an annual cost of life insurance is added. The taxes and fees in force at the time of contracting will be applied. The entity will not pass on to the client the expenses of constitution of mortgage (management, notary, registration and taxes)
