Edge of Bankruptcy

Submit Enquiry




Enquiry Type


Enter Code:

Mortgage Loan Information - Know The Basics When You Refinance Or Purchase A Home

By: Carrie Reeder

If you are currently looking for a new home, chances are that in all the excitement you won't really give any thought to the type of home loan mortgage you take out, instead going with the first one offered to you. This could be a serious mistake – costing you thousands, if not tens of thousands. Make sure you know all about the different types of home mortgage loans before you starting looking for that new dream home!

Here are some of the basic types of mortgage loans:

Fixed-rate home loan mortgage -

As the name suggests, this is a plain-vanilla home loan. Basically you borrow a certain amount over a certain period at a fixed rate of interest. You then pay the same monthly installments for the life of the home loan. The benefit of a fixed-rate home loan is that you can easily budget for the repayments. The downfall of a fixed-rate home loan is that you could end up paying a higher rate of interest than everyone else – no one knows what interest rates will be in 15-20 years time!

Adjustable-rate home loan mortgage -

Mirroring the fixed-rate mortgage is the adjustable-rate mortgage. Again, you borrow a certain amount over a certain period, however in this case the interest rate is not fixed, but is adjustable (or 'floating' as you may also hear it called). The upside to adjustable-rate home loans is that the interest rate at the start of the loan period can be lower than the fixed rate would be. The downside is that it is difficult to budget for, as the amount can change, and you are at the mercy of something outside of your control – interest rate fluctuations, which can change quickly.

Hybrid home loan mortgages -

Trying to fill the void left with the downside of the fixed and adjustable/variable-rate home loans, the hybrid home loan lets you fix the interest rate over the first part of the home loan, and then switch to an adjustable/variable rate later. The upside of hybrid home loans is that they allow you to budget for your repayments during the expensive time when you first buy the home. The downside is that if floating rates are much higher than your fixed rate when the switch happens, you could find you are paying a much higher repayment each month.

This article is free for republishing
Source: http://www.articlealley.com/article_4279_19.html

Don't Miss...
  1. California Reverse Mortgage: Let Your Property Secure Your Future
  2. Using a Credit Repair Lawyer to Raise your Credit Score
  3. 125% Mortgage loan
  4. Cheap Loans Till Payday - Using Cash Advance Loans In An Emergency
  5. Flexible Tracker Mortgages Explained
  6. Unsecured Loans Have a Place in Your Financial Plan
  7. Interest Only Mortgages under Attack
  8. Choosing From a Mortgage Medley
  9. 72 Month Auto Loans are Very Tempting
  10. Choosing From a Mortgage Medley
  11. Apply For Home Mortgage Loan Online With Bad Credit - Things To Consider
  12. Introduction to Simple Pathway for Secured Loans
  13. Home Mortgage Loan Pre-approval Online Keys When Applying For A Mortgage Online
  14. Self-Employed Mortgage Solution – No Doc Loans
  15. Debt Consolidation Loans a Cure for Your financial ills
  16. Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics
  17. A Look At Payday Loans
  18. Home Equity Loans Online
  19. Personal Loans For Poor Credit – How To Ensure The Approval
  20. Online Payday Loans Offer Quick Or Instant Approval For A Fast Cash Loan
  21. Poor Credit Home Mortgage Loans - The Role Of The FICO Score
  22. Squeeze Your Repayments!!! Refinance Auto Loans
  23. Loans No Credit: Help Get Out Of Financial Trouble
  24. Bad Credit Unsecured Loans – Have Access To Easier Finance
  25. Option One Mortgage Loans Getting An Option Arm Or Option One Mortgage Loan
  26. Bad Credit? First Time Buyer? You Can Still Get Approved For A Home Mortgage Loan
  27. Adverse Credit Mortgage Loan - Persistence Is The Key To Getting Approved
  28. Tenant Loans – Short Term Finance For Varied Purposes
  29. Cut Down Repayments with Cheap Personal Secured Loans
  30. No Credit Check Auto Loans: Vehicle without Any Credit Verification
  1. New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process
  2. New Home Loan - Understand The Various Types Of Mortgage Lenders
  3. Home Mortgage Low Interest Rate - Finding The Best Mortgage Rate
  4. Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics
  5. Self Employed Mortgage Loan Getting A Mortgage When You're Self Employed
  6. Home Equity Line Of Credit Or Second Mortgage Loan Online - Things To Do With Your Homes Equity
  7. Home Loan Lenders - Finding The Best Home Mortgage Lender
  8. Home Mortgage Loan Information - Which Type Of Home Loan Is Best For You?
  9. Home Mortgage Loan Pre-approval Online Keys When Applying For A Mortgage Online
  10. Home Mortgage Loan Refinance Benefits To Refinancing Your House Online

© Edge of Bankruptcy 2008. All Rights Reserved