Making a loan with fixed interest or with a variable interest rate? This is one of the most important questions that any person who wants to take a mortgage has. Considering that such a loan spans over a fairly long period, you must know what each type of interest implies, as well as its advantages and disadvantages.
What is bank interest?
When you use the services of a financial institution for a loan, it will charge you an interest rate. Bank interest is the amount of money that a client pays to the lender (bank) for the money borrowed. No institution will give a loan for free. Thus, if you want to use the money that a lender can give you, you must necessarily pay an interest until you return the loan in full.