Types of Mortgage Loans Basic Information you MUST know!
We have been working on a series of articles now that are basically linked together, they are all a smorgesbourg of information all about a wonderful yet frightening (for some people) subject. That subject dear readers is Mortgage loans.
Surely the mere uttering of this phrase will scare the daylights out of many yet this is something that every person will eventually have to face at one time or another in their lives and we are here to make the road a little less rocky for you. So without any further adieu we will delve forward.
As mentioned in a previous article, there are quite a few different types of loans that a bank or other financial institution will have to offer and that is just the plain loan department, never mind the fact that there is the Mortgage loan category to cover.
The following are a few different loan categories:
Prepayment: There are certain loans that a person can get where there is the option that you would have to pay a certain amount up front to the lender (bank, etc..)
Interest: This is the part where most people get a little nervous. The interest rate can sometimes be a certain amount that the bank decides you will have to pay, this depends on how long you have to pay back the loan.
How often you make payments: This is another part of the loan scenario that many people will be a little worried about. This is basically a contract between you and the lender that states how much your payments have to be every month or week. It will also state if you will make the payments bi- monthly or bi-weekly.
Term: This is basically the life of your loan. When you decide to borrow, the bank or lender will decide along with you (the borrower) how long this loan will be for. In other words, you will have a certain amount of time to pay it back.
There are two different types of loans that we should mention, there is the adjustable rate mortgage loan and then there is the fixed rate mortgage loan. Most of the time, when you get a mortgage loan, it will be an adjustable rate mortgage loan (otherwise known as a floating rate loan).
There is a possibility of getting a loan that has the two types included where the loan itself will stay at a certain amount (the amount you pay back every month) and then after that time frame is up you will have a chance to change it to an adjustable rate mortgage loan.
We hope that the information that was provided here today has helped many of you readers out there who have been wondering about this subject. Remember, it is always good to ask questions when you don't understand something. If you don't ask questions, you will never learn.
To part I will quote something that my granny used to say, you learn something new everyday. This is quite true is it not? Thank you all for reading this today and hopefully you have learned something new.
Surely the mere uttering of this phrase will scare the daylights out of many yet this is something that every person will eventually have to face at one time or another in their lives and we are here to make the road a little less rocky for you. So without any further adieu we will delve forward.
As mentioned in a previous article, there are quite a few different types of loans that a bank or other financial institution will have to offer and that is just the plain loan department, never mind the fact that there is the Mortgage loan category to cover.
The following are a few different loan categories:
Prepayment: There are certain loans that a person can get where there is the option that you would have to pay a certain amount up front to the lender (bank, etc..)
Interest: This is the part where most people get a little nervous. The interest rate can sometimes be a certain amount that the bank decides you will have to pay, this depends on how long you have to pay back the loan.
How often you make payments: This is another part of the loan scenario that many people will be a little worried about. This is basically a contract between you and the lender that states how much your payments have to be every month or week. It will also state if you will make the payments bi- monthly or bi-weekly.
Term: This is basically the life of your loan. When you decide to borrow, the bank or lender will decide along with you (the borrower) how long this loan will be for. In other words, you will have a certain amount of time to pay it back.
There are two different types of loans that we should mention, there is the adjustable rate mortgage loan and then there is the fixed rate mortgage loan. Most of the time, when you get a mortgage loan, it will be an adjustable rate mortgage loan (otherwise known as a floating rate loan).
There is a possibility of getting a loan that has the two types included where the loan itself will stay at a certain amount (the amount you pay back every month) and then after that time frame is up you will have a chance to change it to an adjustable rate mortgage loan.
We hope that the information that was provided here today has helped many of you readers out there who have been wondering about this subject. Remember, it is always good to ask questions when you don't understand something. If you don't ask questions, you will never learn.
To part I will quote something that my granny used to say, you learn something new everyday. This is quite true is it not? Thank you all for reading this today and hopefully you have learned something new.
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