Types Of Mortgage Loans
There are various types of mortgage loans in the loan market, selecting a right loan package become a difficult task for those without experience of buying new home. Thus, before taking any loans, we should gather much information and current market rate of the mortgage rate. Understand the loan types and how is the loan's operation.
Generally, we can categorized mortgage loans into 2 categories. First are conventional and government loans, second are the fixed and adjustable rate. Conventional loans are available in many forms such interest only mortgage, equity only mortgage, reverse mortgage, Jumbo loans and many more. For government loans, there are available into 3 main forms which are FHA loans, VA loans and RHS loans.
Please refer to
Home Loan Guide instead of Types of Mortgage Loans
, to review and study more loan advice and information.
Here are some tips provided for 1st time home buyer
1) Raising a sufficient first time buyer deposit, generally is 5-10%, is necessary to get acceptance for a low mortgage rate deal. It is also protects against negative equity in a falling property market.
2) Learn from relatives or friends who has experience in buying home, get the contact and background of lenders from them. Usually they will refer a lender to you if the lender is good.
3) Spending much in deposit, this will reduce the interest rate of the loan significantly. For instance, the interest rate will generally lower for those who put 20% of the home value as deposit, if compare those who put 10%.
4) Surf for government loan websites, get some useful advice and guides from them.
5) Seek for loan package with minimum prepayment penalties. Because you may need to refinance your home in future.
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