Housing Loan Terms
If you are buying your first house, you may be a little wary of the mortgage loan that you are applying for. There are basically 3 main terms that will most likely influence you on your mortgage decision.
Everyone would naturally think about interest rates when it come to loans. It is no different with a mortgage loan. This is especially so for mortgage loans because of the sheer quantum usually associated with this sorts of loans. There are also generally 2 types of interest rates structure for a mortgage loan. Fixed rates and adjustable rates.
Fixed rates refer to interest rates that remain the same throughout the lifetime of the entire mortgage loan. It is suitable to those who prefer a stable loan so that they know exactly what they will be paying now and in the future. This gives them the comfort of planning their finances with a certain level of certainty.
Adjustable rates also know as adjustable rates mortgages are interest rates that fluctuate with the market. This means that if you take up an adjustable rates mortgage, you can expect the interest on your mortgage loan to fluctuate with market sentiments. Usually the initial rates of this types of mortgage loans are low so as to attract people to take them up.
The second thing that usually comes up for mortgage loan seekers is the loan tenure. In other words, the duration of the whole mortgage loan. A longer duration will mean lower monthly payments but more total interest paid. And vice versa.
Most people prefer to take a longer term for a lower monthly payment. The monthly payment is the third thing that that will determine your choice of mortgage loan.
Find your priorities and evaluate your housing loan offers. You can also get help choosing the best housing loan from those who are actively in the market.