25 Tips For Buying Your Dream Home in 2019 – Series
25 tips for buying your dream home in 2019- series continues.
12. Read Up on Mortgages
The type of mortgage you obtain is going to influence your monthly payment amounts. With a fixed mortgage, the payment is always the same amount. You can select the term or number of years for your home loan. Typical mortgage terms include 15, 20, and 30 years, but longer and shorter times are also available.
On the other hand, if you obtain an adjustable rate mortgage, the monthly payment changes at several predetermined times because the interest rate on loan adjusts on an annual basis. Typically, you begin with a lower interest rate and finish with a higher percentage attached to your mortgage.
It is possible to obtain a hybrid loan that combines a fixed loan with an adjustable mortgage. With this type of home loan, the initial five years of the mortgage loan is a fixed interest rate. Once this term is satisfied, the loan becomes an adjustable mortgage, and the interest rate is adjusted annually for the remainder of the loan.