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Mixed, fixed and variable rates: know the differences!

Are you thinking about buying a house and come across a lot of unknown information and so you don't know if you are making the best decision?

Today we explain you the difference between rates, so when it's time to decide you have all the information on your side.

Mixed Rate

By choosing to take out a loan with a mixed rate, you are accepting that the value of the installment is different in two different periods of the contract. What happens is that during the first period, the credit contract is associated with a fixed rate with terms generally around 2, 5 and 10 years and, after the end of the fixed period, the rate becomes variable, being calculated based on the Euribor rate, plus the spread value established at the beginning of the contract.

It's important to note that during this period your credit installments will vary according to Euribor fluctuations.

Fixed Rate

If you decide to take out your House Loan with a fixed rate, this means that you will have the same monthly payment from the beginning to the end of the contract, without worrying about interest rate fluctuations.

A taxa fixa é determinada pelo banco e durante todo o período a sua prestação permanece inalterada, sem surpresas.

Variable Rate

A mortgage with a variable rate is affected by two variables: the spread defined by the bank and the Euribor rate.

Therefore, if you choose a variable rate, take into account that the interest rate fluctuates throughout the contract and therefore your monthly payment will also undergo constant updates.

But after all, which is the best option for me?

There is no right answer to this question, as your reality is not the same as your friend's. To make a conscious decision it's important to analyze your case, understand what your condition is, how you deal with money, what your effort rate is, etc.

Once these questions have been clarified, you can decide which type of rate best suits you, and based on our experience, mixed rate credits are gaining more and more fans.

In any case, and to make the process simpler, contact us. We will analyze your situation and present you with our best proposals, explaining each one so that you can consciously make a decision.

Go Crédito

GO Crédito is a company specialized in credit intermediation, authorized and supervised by the Bank of Portugal. We provide credit intermediation and consultancy services quickly and effectively.