There three common types of home mortgage. As borrower, you should know the positive and negative factor of each home mortgage options to save money and avoid paying too much interest.
- Fixed Rate
Fixed rate mortgage is advisable for those people who have plan to stay in their home for long years. The interest rate will remain the same throughout the loan term.
- Adjustable Rate Mortgage
The interest rate in this of loan is determined by the market trend. This best suited for beginners who plan to purchase a house as an investment and sell it in just a short span of time.
- Balloon Mortgage
This type of mortgage has a large size on your final payment. That’s why it is termed as balloon payment. Your mortgage is not fully amortized at the end of the loan term which makes you to have a balance due even at the maturity of your loan. It is more suited for commercial real estate. Do not be confused between adjustable rate mortgage (ARM) and balloon mortgage. The latter may require repayment or refinancing while ARM does not need refinancing.
Find a mortgage now with Greenville Mortgage Place. Their independent brokers are very much willing to educate their clients on how to obtain the best mortgage deal. They give you sources and options for your real estate.
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