What is mortgage?
It is a special type of loan where some property is pledged for repayment of the loan.
Finding the Right Mortgage Loan
Today you will find number of mortgage loans offered by a lending companies . If you have not purchased any home before then it will give you a bit daunting.
As per your circumstances and economic climate , you have to choice between an adjustable rate mortgage and a fixed-rate loan .
A fixed rate of mortgage is that which charges a fixed amount of interest i.e. 6% . If there is high or low on the national interest rates in the year , you have to pay a fixed interest ( it never changes)
The lender may add a few points onto your interest charge ,when issuing the loan adjust for their own losses.
An ARM Mortgage , it is not consistent .It starts with a very low interest rate for the 1st few years After that it starts adjusting the interest depending on the average interest rates of the day.Your home payment will rise or fall monthly.
The 3rd type of mortgage loan is a reset loan.it is some times know as a balloon loan. It is also a type of fixed rate mortgage , there is an intial fixed rate of interest.
Drawback of Balloon loan-After complete of the initial period of low interest , you have to pay the balance of your loan.
I am searching for the option of mortgage loan I want to know some details that how much time it takes in process of getting loan approved.
ReplyDeleteMortgage knoxville