You’ve found the home that is right for you, and now you need to do the same thing for a mortgage. There are several options for people out there, each one designed for a different type of buyer.

YOU MUST BE 75 YEARS OLD OR YOUNGER TO OBTAIN A MORTGAGE IN PANAMA, MOST BANKS SHARE THIS SAME GUIDELINE. THE LONGEST TERM BANKS OFFER FOR FOREIGNERS INVESTING IN PANAMA IS A 25 YEAR MORTGAGE. IN ORDER TO QUALIFY FOR THE 25 YEAR TERM YOU MUST BE 50 OR YOUNGER AT THE TIME OF APPLICATION.

You need to ask yourself several questions when searching for a mortgage type.

1. How long am I planning on being in this home?
2. What monthly payment can I afford?
3. What type of payment fits into my long-term financial plan?
4. What type offers me the best rate for my situation?

Since most people like the security of knowing what their payments will be long term, many will get a 15 yr. Or a 30 yr. Fixed rate loan. But this may not be what would work best for you. Below are some things to consider when making your selection:

Fixed Rate Loan-
Fixed rate loans are currently unavailable in Panama.

Variable Rate Loan-
Most Variable Rate loans start out with a fixed rate for a specified length of time and change to a variable rate loan. These work well when people expect their income to increase dramatically after a few years, or those planning to move from the house after a few years. The most common loan lengths are 3/1, 5/1, 7/1, and 10/1. The first number is the length of time in years the loan is at a fixed rate. The second number is the length of time in years that it would adjust in after the fixed rate period. There is a cap on the amount of percentage points it can go up after the fixed rate period. It is usually 2% a year. With these types of loans you may pay more principal and less interest in the long run.