Various Types Of Loan For Mortgage
There are numbers types of loan for mortgage in the loan market, at this page we will sharing some of the loans information and types of financial assistance.
Purchase a home is one of the biggest investment in life time for most of the peoples, to fulfill financial situations of peoples various loan types have arose and they are specially designed to meet the circumstances. Below are some basic and common loans for home buying.
1) 30 years fixed rate option - this is the most common and preferable loan type for public. The payment term divided into 360 months, the installment amount and interest will remained the same from beginning until the end of the installment. As the name implies, the rate is fixed.
2) 20 years fixed rate option - this option is similar to 20 years fixed rate option, payment term divided into 240 months. Since the payment term is shorter than 30 years term, the amount paying will be more than 30 years term. Some lender will allow for lower rate cause the principal amount pay-off faster.
3) 15 years fixed rate option - similar to 20 and 30 years fixed rate option, term of payment divided into 180 months. The amount paying monthly is highest among 3 options. Interest rate of the loan might be lowest among 3 options also.
4) The balloon option - this loan option is quite similar to 30 years loan term. It can be categorized into 5, 7 or 10 years. The interest rate will be fixed according to the group, 5 years will have the fixed rate for 5 years, same as other options. The payment schedule will normally at 30 years, at the last 5, 7 or 10 years, the outstanding principal balance of the loan is due plus any unpaid interest.
For more loan information and services, please take a look at Various Loan Services instead of Types of loan for mortgage
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