Types of Mortgage: Which One is Right For You?
So, you are planning to buy your perfect house or
commercial property but don't know what your options are in
the mortgage department.
Well, there are tons to choose from and they are all
tailored to your specific needs. If you have a great job
and money isn't an issue, you can make higher payments and
possibly pay off your loan in as little as 10 to 15 years.
For many people though, they don't have great jobs and need
to best plan for their budget.
Most mortgages differ in just a few ways. They may require
balloon payments up front or toward the end of the loan
period or they might be influenced monthly by ever changing
Fixed rate loans are very popular because you are
guaranteed to have the same bill every month regardless of
interest rates. If you are on a budget, this is a great
Adjustable rate loans differ from fixed rate as they
fluctuate with current interest rates. Don't worry though,
they usually have a cap so you won't be paying twice as
much as the month before. The cap is usually just a couple
These are just a couple of popular types of home loans. If
you plan on getting a commercial loan, you will have many
more mortgage types available.
Some of these have very low payments for the first year
until your business is established and they they increase
so you can pay them off quickly.
The best bet is to research the different types of loan you
are interested in and discuss them with your broker.