What is the monthly fixed monthly payment of a mortgage

The monthly fixed monthly payment on a mortgage refers to the amount of money you will pay each month during the life of the loan. It will also depend on the interest rate, if it is fixed or variable, that we also know the time during which we will be paying the mortgage . Below we explain the difference of the fixed monthly fee if you have fixed or variable interest.

one

In the case of mortgages at a fixed rate, knowing the term of the loan and being the interest always the same, the fee does not change and we know what we will pay each month until the last loan maturity. You will never be affected by possible changes in the interest rate due to the evolution of the market. Its drawback is that, in general, the life terms that can be established in these credits do not usually exceed 30 years and that the initial interest rates are higher.

two

In the case of variable mortgages with a monthly fixed rate, it means that we know what we will always pay each month, but we do not know when it will be paid, since depending on the interest rate increases or decreases the final term of the mortgage it will also vary by lengthening or shortening respectively.