Various Types Of Mortgages
- February 21, 2015
- No Comments
Mortgage brokers act as an intermediate between the buyer and the lender. If you do not know which mortgage broker to hire among the thousands of the brokers present in the market. So, that you can end at the closing table by receiving loan terms, fees and interest rate as promised to you. You should know about the different types of mortgages, which will help you choose and deal with the mortgage broker.
Fixed rate mortgages are fifteen and thirty year, this is the time you have to pay off the loan. Interest rate on thirty year mortgage is higher than that of fifteen year. But the monthly payment of fifteen year mortgage is higher than the mortgage of thirty year one. You can discover more about types of mortgages from banks, mortgage brokers and even websites.
Adjustable rate mortgages start with a lower interest rate or a teaser, which is fixed for a certain period of time. These rates modify depending upon the changes in the market interest rate. You should be sure that you can afford it, even when interest rate hit its maximum. Other is the balloon loans, which have lower interest rate than a fixed rate mortgage. The interest rate is stable for period of five, eight or ten years but as the time is up, you have to pay the entire balance of the loan. VA, FHA and FmHA are also types of mortgages available. So, be careful while choosing a mortgage and discuss it in detail with your mortgage broker.