Mortgage Types For First – Time Home Buyers
If you want to buy a home, then you have to save for many years.So a better option is to borrow a mortgage and get the home for your dreams. Getting a mortgage loan is easy as many financial institutions offer this loan.You can hire a mortgage broker from Kent to make the process easy. They will check your annual salary, income, credit history,etc.to make sure that you are trusty borrowers. Once,they are sure then immediately they start the paperwork and help you throughout the process.
Here are the types of mortgage loans.
- Fixed-rate type mortgages – this loan is provided with a fixed interest rate over the time that you set. The biggest advantage is that the monthly payment is the same. This makes it easier for you to plan your budget for buying a home without any doubt about your future. It also avoids additional extra charges from month to month. If the rate of the market increases, then also you do not have to pay the extra monthly payment. There are three types-5, 15, 30 years fixed mortgages. They all are affordable and convenient loans. It also makes you to pay the principal easily and earlier.
- Adjustable-rate type mortgages – These have variable interest rates. They are unique because the interest rate is adjusted according to the market rate. It is of three types-10/1, 7/1,and 1-year adjustable rate mortgages. It is more beneficial for those how are looking for a home for a short period of time.