Bank interest
Loans to buy a house are very common in real life. Banks are not in the business of charity, they lend money to people to earn interest. So while you decide to take out a loan from a bank, you should also find out what type of interest may be suitable for your case.
Fixed interest rate (hipoteca fija)
Fixed interest rate, as the name implies, is the interest rate that the person has to pay is fixed. The lender is not affected by whatever changes in the interest rate in the market in the future. The lender knows from the beginning how much interest he or she will pay in total.
Variable interest rate (hipoteca variable)
In contrast, a variable interest rate means that the interest that the lender will pay is calculated according to the market fluctuations. Usually the banks use the indicator of the Euribor. The interest rate that the user has to pay is Euribor + a fixed percentage %.
Hybrid interest rate (hipoteca mixta)
It is a mix of fixed and variable interest rate products. The interest rate is fixed for the first years of the loan and becomes variable for the following years.
