There are many classifications of mortgage loans. We expose here the more common: according to the type of interest, we can distinguish: mortgages with variable interest: interest that applies to the mortgage varies depending on a type of interest is reference (normally the Euribor for one year, although others exist as IRPH boxes, IRPH of banks, etc..). Mortgages with fixed interest rate: the interest that applies does not vary throughout life d the mortgage. It is always the same. Remember a specific value on the contract. Mixed mortgages: are mortgages in which there are periods with a fixed interest rate and other periods with variable interest. Normally with fixed interest periods are placed at the beginning of the life of the mortgage.
According to the maximum term to which are granted, maximum terms more noteworthy are: mortgages to 40 years, mortgages to 50 years, 30-year mortgages. Entities normally limit the term up to 30 or 35 years. There are important to keep in mind in this case: the age of the youngest holder at the end of the life of the mortgage. You must not exceed the 75 or 80 years. In these moments, it is unusual to grant mortgages to 50 years. It was a few years ago when required risk criteria were clearly less demanding.
According to the purpose of the loan: mortgages for residence. Mortgages for second homes. Mortgages for commercial property. Self-build mortgages (are mortgages designed for individuals who want to build their own house). Mortgages for regular housing reforms. Bridge mortgages (are mortgages designed for changing House, facilitate the purchase of the new house without having sold current wing). Mortgages for subrogation (intended to replace an existing mortgage). According to the percentage of the amount of the purchase financed within this classification the most common are: mortgages to 100%: finance 100% of the value of the home (specifically of the appraised value). Mortgages at 80%: is the maximum percentage of financing most common. Demands for provisions mark this as a limit. Mortgages at 70%: mortgages for second homes or business premises enjoy normally and greater demands. Mortgages to 120%, up to a few years ago offered mortgages above 100%. Without a doubt: were other times. Other types of mortgage: mortgages with deficiency (include an initial period in which interest or capital are not paid). Mortgages with fixed fee: are variable rate mortgages that are modifying the maturity to maintain the fixed fee between changes in the interest rate. Online mortgages: mortgages that may be hired by Internet. Subprime mortgages: subprime mortgage is a type of loan from the financial market in the United States which is characterized by a level of default risk high, higher than the average for the rest of loans. Young mortgage (mortgage designed especially for young people, tend to fear special conditions adapted to their situation of age). Mortgages in foreign currency are mortgage loans nominated in a currency other than the euro. For a time have been attractive by being referenced at the benchmark interest rate of the corresponding currency which could be clearly lower (Swiss franc, yen,..). Currently they have stopped making sense by the low level of the Euribor and the risk of change that runs.