Choosing the mortgage for financing your home cost
Want to have dream house but confused, because do not have enough fund to make it happen? Do not worry, you can try a mortgage loan with an unbearable mortgage. Meanwhile, perhaps you need to visit your trusted local mortgage brokers as well.
Keep in mind, a mortgage can be said as an agreement. Mortgages are an agreement made between the borrower of the fund and the owner of the fund, which of the agreement allows the borrower, has a dream house in installment, the point is a mortgage loan allows you to pay a home in installments.
Mortgage Loan for Home Financing
You can apply for a mortgage loan to the Bank, after applying for a loan, the lender will hold property rights until you are able to pay the mortgage installment until it is paid off. The advantage is that you can already occupy your home like your own, even if the installments have not paid off.
In this case, of course, the property/house is used as collateral, by the party of the mortgage (bank). So, if you can not afford to pay off your remaining mortgage debt, then the property can be seized by the bank.
The advantage of making a mortgage loan is to reduce the risks that the lender might incur and also the borrower be charged only with a lower interest rate. Generally, these mortgage loans are often chosen in by individuals but do not rule out, a company can buy property with a mortgage loan.
Types of Mortgages
A mortgage with Fixed Interest
A fixed rate mortgage loan is a type of mortgage that requires you to pay a fixed amount and there will be no change in the amount of the payment.
The tracker mortgage loan is a loan that is fixed through a fixed percentage but may change from time to time by adjusting the interest rate of the bank.
Your installment will increase along with the increase in bank interest rate, otherwise, your installment may be lower than before due to decreasing bank interest rate.
This type of mortgage loan will guarantee your ownership of your home in the long run. You have to pay the interest every month and the principal.