When considering a mortgage, there are a couple of questions you need to ask yourself. A mortgage is a great long term investment.
The best way to work this out is to look at your taxable income, minus any outstanding debt and your monthly payments. However, when considering this make sure you know how much you can afford. You can also get best mortgage loan service service via https://www.mortgagewapp.com/
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Mortgage Down Payment
Once you have worked out how much your can afford to pay on your mortgage payment, the next part to consider is the down payment. Depending on your circumstances the mortgage down payment can be anything from 5%-25%.
Type Of Mortgage:
There are a few different options: Mortgages usually come in two forms closed or open:
Open Mortgages – Opposite to closed mortgages. The interest rate of the mortgage may fluctuate and there are no penalty fees for early redemption. Because of the added flexibility the interest rates are normally higher.
Closed Mortgages – Closed mortgages are where the interest rate is fixed for the full term of the mortgage. The rate is normally lower than most mortgages, however if you wish to pay off the mortgage and change the mortgage terms you will incur a mortgage penalty fee.
Variable rates Mortgage – The variable rate mortgage means that the interest rate will vary according to market conditions. These types of mortgages can either be open or closed.
Fixed rate Mortgage – The fixed rate mortgage has the interest rate fixed for the entire mortgage term. This is a good way to work out the exact mortgage payment needed each month.
Interest Only Mortgages – While these are rare when market conditions are fluctuating so much some lenders are still able to offer interest only mortgages.