pay off mortgage 5 years

currently on the market, there are many varieties of mortgage loans available. Sometimes it can be difficult to tell which mortgage loan and is suitable for you.

I will be the 3 main types of mortgage loans on the market. Most banks and lenders, mortgage loans, which in one of these categories.

1. Fixed Mortgage Loan

Fixed mortgage loans are the most popular and in the three types of mortgage loans.

You take a mortgage loan with a lender and you pay a certain amount for the repayment of a fixed period of time. Most people usually choose 30 years fixed mortgage loans as the monthly repayment amounts are low and the interest in the rule, even in a 30-year period.

One disadvantage of 30 years fixed mortgage, you must pay back more for your mortgage loan in total compared to someone who is a 15 or 5-year loans.

There are also shorter periods such as 5 years, 10 or 15 years fixed mortgage loans. It allows people who want to pay off their house in a shorter period. Of course, you have to make sure that you have the financial capability to repay higher monthly repayments.

There is also another sub-category of mortgages known as adjustable rate mortgages or ARM. In general, you start with a lower interest rate compared to a 30 years fixed mortgage loans. , So that in the end you pay less per month for your mortgage repayment.

However take note that ARM is highly dependent on fluctuating interest rates. In other words, you pay less for monthly repayment when interest rates are low and pay more if the interest is high.

2. Convertible bonds

Convertible bonds are increasingly popular because it allows people, their mortgage loan options allow more flexibility.

If you find that interest rates are too high, you can at a fixed rate mortgage loans. If interest rates are low, you can also convert to ARM based mortgage loans.

There are too many varieties of convertible bonds in this category. But I kind of bonds I treated.

Balloon loans

A balloon loan is a fixed rate convertible bond. Normally you start the recovery by small monthly repayments for a period of years, usually 5 or 7 years. At the end of this period, you must use the loan in one sum.

What is the advantage of a balloon loan? It is primarily by investors or property dealers who are selling the house in a short time. You can take advantage of low interest rates without their money on a house. Because they have a large sum of money when they sell the house, it will not be a problem for the lump sum payment.

3. Special Mortgage Loan

These are mortgage loans that can only be offered to a group of people. For example the FHA mortgage loans are only available to first time home buyers or people with bad credit.

Another is the veteran affairs mortgage loan. You are only widows of U.S. forces.

The best way to know whether you qualify or is suitable for a mortgage loan to speak, is a professional mortgage consultant before you decide to offer all mortgage

Ricky Lim works in a finance company specializing in home refinancing loans. Visit his site for countrywide home loans and housing loans calculator