Mortgage Comparator

Compare up to three mortgages at once — fixed, variable, or mixed — by entering the amount, term, and conditions of each, to see at a glance which has the lowest monthly payment and which has the lowest total cost over the life of the loan.

Mortgage 1
Mortgage 2
Mortgage 3

When should you use this calculator?

Comparing mortgages only by the nominal interest rate is a common mistake: two offers with the same nominal rate can have very different total costs depending on the origination fee, mandatory linked insurance (life, home), and other costs the bank requires to apply the advertised rate. This calculator accounts for the monthly payment, total interest, and total cost (including fees and insurance) of each mortgage, so the comparison is fair.

With a fixed-rate mortgage, the payment and interest rate stay constant for the entire life of the loan, which gives predictability but usually starts from a somewhat higher rate than a variable one at signing. With a variable-rate mortgage (common in Spain, linked to Euríbor), the rate is calculated as a reference index plus an agreed spread with the bank, and it's reviewed periodically (usually every 6 or 12 months), so the payment rises or falls as the index moves.

An example comparison: a fixed rate of 3.2% versus a variable rate of Euríbor + 0.6% (with Euríbor currently around, say, 2.5%, an effective rate of 3.1%). In the short term they may look similar, but while the fixed rate guarantees that payment for 25 or 30 years, the variable one will fluctuate with the index: if it rises above the fixed level, the variable could end up costing more; if it falls, it could work out cheaper. The choice depends on your risk tolerance and your expectations about interest rates.

Besides the interest rate, always compare the APR (annual percentage rate), which includes fees and costs and therefore better reflects the real cost, and check the conditions for a discounted rate (direct-depositing your salary, taking out insurance or cards), which many banks require to apply the advertised rate and which, if not met, raise the effective rate above what was advertised.

FAQ

What's the difference between the nominal rate and the APR?

The nominal rate is just the pure interest rate; the APR also includes fees and associated costs, so it better reflects the real annual cost of the mortgage.

Is a fixed or variable mortgage better?

It depends on your profile: fixed gives total certainty about the payment for the whole loan term; variable can work out cheaper if the reference rate stays low, but carries the risk of the payment rising if it goes up.

What is a mixed-rate mortgage?

It combines an initial period (usually 5-10 years) at a fixed rate, followed by the rest of the term at a variable rate, aiming for a middle ground between initial predictability and potential long-term savings.

What is the spread on a variable-rate mortgage?

It's the fixed percentage the bank adds to the reference index to calculate the applied interest rate; for example, "index + 0.75%" means you pay the current index rate plus that fixed 0.75%.

What are rate discounts and how do they affect the rate?

They're discounts on the interest rate the bank offers if you take out linked products (direct-deposited salary, insurance, cards); if you stop meeting those conditions, the rate can rise to the non-discounted rate.

What costs besides the payment should I compare between mortgages?

The origination fee, mandatory linked insurance, early repayment fees, and appraisal and notary costs, which vary between lenders and affect the real total cost.

How does the term affect the comparison between mortgages?

A longer term lowers the monthly payment but increases the total interest paid over the life of the loan; always compare the total cost, not just the payment.

Can I switch from a variable to a fixed mortgage later?

Yes, through a rate amendment with your current bank or by switching to another lender, though both options usually carry fees and costs worth calculating before deciding.

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