You might not have a problem with finding the right type of mortgage loan from a mortgage broker in Melbourne, if you have done this before. But, if you are a first time home buyer, you might not really understand the different types of mortgage loans that you can get. And, then making the right decision might be hard. Here are a few of the different types of mortgage loans that you can get, to make the decision much easier for you.
The first option that you can go for, when you are thinking about getting a home loan from a company like mortgage broker, is the 30-year fixed option.
This is mostly the most popular option, because this means that you can repay the home loan within 30 years. This makes the premiums a lot less, and this is the only way that most people can afford the home loan. ‘Fixed’ means that you are going to get a fixed interest rate. Your premium of your loan will never go up and you will always know the amount that you need to repay, each and every month, for the next 30 years.
The downside to the fixed installments, is that the repayments are a bit higher than with the interest rate that is not fixed. But, this gives you the reassurance of the premium that will not go up, ever. Read this post for more related informations.
With this option you are also paying the same amount of money back to the mortgage broker in 15 years. This is also with a fixed interest rate that might be higher than the current interest rate for lending money.
People who are taking this option have a bit more money, to repay the home loan back in 15 years. The premiums will be higher than the 30 years, but the interest rate will be lower, and your total repay amount will be a lot less. This is also a good option for people who want to know that their premiums will stay the same, but who don’t want to repay a loan back for 30 years.
With adjustable-rate mortgages, you are going to be able to choose between 15 and 30 years. But, with the difference that the interest rate will not be fixed.
When the interest rate is going down, your monthly installments is also going down. However, when the interest rate is going up, so will your monthly installments.
Many people are scared of this kind of home loan, because they will never know what their premium is going to be in three months. But, the good thing about getting this type of home loan from a mortgage broker in Melbourne, is the fact that you will pay a lot less interest than with the fixed interest rates. Making the total amount repayable much cheaper.
Knowing your different options will make it easier to choose the best one for you and your family. This makes it easier to get a home loan and to be able to repay the loan without any trouble. If you have any questions you can always ask your mortgage broker for some advice and answers.
Find out more informations in this link: http://news.bbc.co.uk/2/hi/business/480121.stm