The Mortgage is a specific contract, as defined by a provision of the Civil Code which provides: “the mortgage is the contract with which one party (lender) delivers to the other (borrower). A mortgage is the legal term used to indicate any form of “loan”, but especially when you go to the bank to ask for money to buy a property.In general, a loan contract is “packaged” by banks, credit institutions, it is important to define the conditions in the best possible way: the duration of the contract, the methods of disbursement and repayment of the money, the interest rate applied, the obligations of the subjects, warranties, etc. Interest is the price to pay in order to be able to have direct access to the sum of money requested by the lender (bank, credit institution or financial company) for a certain period of time. The interest rate is declared as a percentage. Mortgages can also differ according to the interest rate adopted, and the most commonly used rates are: Fixed ra you, Variable rate.

  • The fixed rate mortgage has the same interest rate until the mortgage is paid off. The rate is fixed at the time of stipulation on the basis of the market reference rate.
  • The variable rate mortgage is offered with an interest rate that changes in relation to the performance of one or more reference measures specifically specified in the contract.

The conditions of the different types of mortgages may vary from proposal to proposal, lenders are becoming more and more flexible and the personalization of the service is increasingly feasible.