123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

3 Different Types Of Mortgage Loans

By Author: Get Leads Fast
Total Articles: 737

There are a number of types of mortgage loans that you need to know before choosing one for your house.

Mortgage loan is a type of loan that is taken from banks or even private mortgage bankers or online brokers. This loan is received when pledging the owned property to purchase the new property. Mortgage loans are those that are available for a long period of time that is 15 to 30 years. The payments that you should make are distributed over the tenure of loan, the type of mortgage loan you select and also the interest rate decided.

To ensure that the borrower repays loan properly and that too at regular intervals, there are some aspects that the lenders generally examine before. The most crucial and main thing that needs to be kept in mind are down payments, monthly interest payment and many more. All of these will depend on the kinds of mortgage loans that you select. There are many types if loans and hence before you take one for your home it is vital that you know all so that you can take the correct decision.

Type #1

Fixed interest mortgage loan:

This is known to be the kind of loan in which interest payable is fixed. This means that each month the amount of interest needs to pay is known in advance. In such a case, you can even calculate the amount of expenditure that takes place every month including the repayment as well as interest payment. Hence, you can know whether you can afford to pay a particular amount monthly or not. This is known to be one among the common types of mortgage loans that people wish to take.

Type #2

Balloon mortgage:

This is the kind of mortgage that providers the borrowers low interest rate for particular period of time. This period usually varies between 5 to 10 years. After the time passes, the borrower should pay the entire amount of principal.

Type #3

Sub-prime mortgage:

This is the type of mortgage that is for people having low credit score. This means that the lender poses a high risk. To compensate on this aspect, the monthly payments and interest rates are high. Most of the lenders make money by this kind of loan. But if the borrower pays the due amount before the time then the lender should pay the prepayment penalty as well. This is one among the rare types of mortgage loan. This means not many people wish to take this mortgage loan.

Thompson Kane & Company is a professional mortgage loans Company providing you great options at the most feasible rates. Opt for their unbeatable Milwaukee mortgage companies Services today!

Total Views: 393Word Count: 438See All articles From Author

Investing / Finance Articles

1. How Long Does It Take To Process An Invoice In Factoring Financing?
Author: Stephen Perl

2. Three Reasons That Indicate This Is Right Time To Invest Your Money In Stock Market?
Author: Anshul

3. The Importance Of A Vat Consultant Cannot Be Understated In Uae
Author: sandeepsharma

4. Secret Of Becoming Billionaire With The Practice Of Stock Trading
Author: Robin

5. Know How Market Indicators In Technical Analysis Impact Your Profitability
Author: Vijay Mathur

6. Free Stock Cash Tips Will Help You Create A Niche For You In This Fiscal Market
Author: Riyanshi Tanwar

7. Net Banking Apps You Need To Download Today
Author: Neha Sharma

8. Internet Banking: Why You Need Ebanking Apps Today
Author: Neha Sharma

9. Reasons Why Imps Transfer Makes A Good Option For Emergency Fund Transfers
Author: Neha Sharma

10. Why Travel Currency Cards Are The New Travel Currency
Author: Neha Sharma

11. How Can You Take Advantage Of The Nro Account
Author: Neha Sharma

12. What Are The Changes In Fd Interest Rates After The Budget 2018
Author: Neha Sharma

13. Know Your Nre Account: 7 Top Features That Are A Must Know
Author: Neha Sharma

14. Loans: A Financial Necessity In Today’s Time
Author: Neha Sharma

15. What Are The Features Of Upi Payment You Should Be Aware Of?
Author: Neha Sharma

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: