Mortgage Loan Options

Published by admin | Filed under mortgage loans

When it comes to home mortgage loans there are plenty of options to choose from and it can be hard to determine which one can be right for you. Let’s have a look at the three main types of mortgage loans there are available but one of those options is discussed below:
1. Mortgage loan is the fixed mortgage loan
2. Mortgage loan is the convertible loans
3. Mortgage loan is the special mortgage
1. The first and most popular form of mortgage loan is the fixed mortgage loan:
30 year fixed rate: this mortgage loan is the most commonly used loan today as it offers the low monthly repayments and is the best option for home owners who want to stay in their house for a long time. Advantage – you have more cash in your pocket each month. Disadvantage – you pay more for the loan in the end compared to shorter loans.
1. 15 year fixed rate: this loan allows you to pay your home off in 15 years, most likely before your children finish school or before your retirement. You save in the long run. Advantage – you pay half the interest of a 30 year loan. Disadvantage – you have to pay higher monthly repayments.

2. Biweekly loan: this loan is usually done on a 30 year fixed rate plan but by paying every fortnight you add in extra payments every year and usually have your loan paid off in about 23 years. This loan also builds your equity in your home a lot faster. Advantage – you pay your home off faster and pay less interest. Disadvantage – you have to pay every two weeks.