Types Of Mortgages
There are so many mortgage products that sometimes it's as hard to choose the right one, as to buy your own house. To understand which type of mortgage will suit you best you should consider some of the issues:
Will you income rise or fall?
Do you plan to stay in your house for a long-time period?
Do you expect interest rate to rise or fall?
The first type of mortgages is fixed rate mortgage.
It's the best one for you if you plan to stay in your home for several years. In case you want your payments to be regular and an interest rate to be unchangeable, fixed rate mortgage will be the most suitable. It is fully amortizing, which means your payments combine interest and principal in the way that in a specified period of time your loan will be fully paid off.