Mortage Loan : Choosing what's best for you!

2007-03-08 10:33:40

( Financial )



There are many types of mortage loan and lenders available in the market. Choosing the best one for you is not that easy but you can narrow your choices by knowing the important factors that you need to consider when making a decision.

First, know the difference between the mortage types. Mortages can be classified as fixed and adjustable rate. In a fixed rate loan, the interest rate is the same throughout the loan term that means that your monthly payment will be constant. While in adjustable rate loan, the interest rate fluctuates depending on the predetermined index; thus, your monthly payment will vary overtime. So when choosing your mortage type, the factors that you need to consider will be: the cost of home that you can afford according to your income, do you expect your income to go higher or lower in the future, how long do you plan to stay in the house and how the interest rates varies.

Second, check the available lenders. Mortgage loans are available from different lenders who offer different packages. You can contact several lenders so you can compare the loan options they offer. Make sure to obtain all-important cost information in the loan such as down payment and service fee. A lender that offers the lowest interest rate will not always be the right choice. You also need to pay close attention to each lender's character. Do they listen to your needs? Are they willing to go extra mile to help you? Do they have a good reputation?

After carefully evaluating each lenders, check if they offer the mortage loan type that fits your needs. This will then lead you to your best choice.

Knowing the available mortage loan types and competitive lenders will help you in easily selecting one that will suit best with your financial picture and preferences.


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