Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Compare Mortgage and Take Advantage of Discounted Rates

By Crowin Smith Subscribe to RSS | December 13th 2011 | Views:
loading
 
  



There are a lot of basic mortgage packages for home buyers who wish to avail discounted mortgage rates. However, this particular endeavor can prove challenging most especially to those who are buying their first home. There are a lot of factors that must be considered in order to get the right home loan for their circumstance. Discounted mortgage rates could equate to increases fees and other costs as a means by the lenders to gain their lost income from the interest payments.

There are loans that have incredibly low mortgage rates at the beginning of the term. Known as honeymoon rate loans, they usually have heavily discounted rates for up to one year. But once the ‘honeymoon’ period is over, the interest rate will become significantly higher. This type of scenario is avoidable if you try and compare mortgage. Lenders have several ways to apply discounts on the loans they offer, which means there will be loans that are more affordable depending on the borrower’s circumstance.

One of the simplest types of discounted loans is basic home loans. They are offered to those who simply wish to get money and fund a home purchase but don’t want other features and options. If you wish to avail of discounted mortgages, here are your options:

Low, Fixed Rate Mortgage

Simply take out other features included in your mortgage and you are sure to get lower mortgage rates. By removing other loan options, it would be easier for the lender to manage your mortgage. This holds true especially for fixed interest rate mortgages, which normally forbid borrowers to make extra payments. By locking your loan in a fixed rate during the right, you won’t need to worry about the Reserve Bank and any changes in the official interest rate.

Capped Variable Rate Mortgage

This type of loan allows you to reap the flexible benefits of having a variable rate loan and fixed rate loan. For example, if the current variable rate offered by your lender is 6%, they could simply put a cap on your mortgage rate at 7%. That means when the rates slide down, you could still avail of the available discount. But in case the rates go up, your interest rate will not exceed the 7% cap.

Honeymoon Rate Mortgage

First home buyers can take advantage of the honeymoon rates to buy some time to adjust to the mortgage repayments. If you’re buying another property, this will be a good option if you wish to free up some cash.

There are other mortgage options to choose from aside from the ones mentioned above. If you are having a hard time choosing the right one for you, try to compare mortgage and match your circumstance. That way, you’ll find out how a specific loan will cater to your financial needs and goals.

Crowin Smith - About Author:
For more information regarding Compare Mortgage, Please visit Cashbackmortgage.com.au

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/mortgage-articles/compare-mortgage-and-take-advantage-of-discounted-rates.htm

Related Mortgage Articles Subscribe to RSS

Best mortgage rate California – Use these time-tested tips
Published by Apil Gupta on June 24th 2012 | Mortgage
Finding the best mortgage rate California is more often than not like locating a needle in a haystac...
 
Get smart about mortgage rates
Published by Jack Smith on April 12th 2012 | Mortgage
The huge variety of mortgage rates makes it much simpler for the buyer to identify and take up the r...
 
Explore the different options of mortgage rates available
Published by Jack Smith on April 14th 2012 | Mortgage
It is advisable to first thoroughly investigate about the most lucrative mortgage rate in the market...
 
The top 5 most preferred mortgage types
Published by Apil Gupta on June 24th 2012 | Mortgage
When it comes to choosing the mortgage types that are available to a home buyer, the options are apl...
 
US mortgage reforms on the way
Published by Apil Gupta on July 16th 2012 | Mortgage
The US mortgage industry is set for reforms in the form of shorter forms, if the Consumer Financial ...
 
You can still borrow money with bad credit mortgage
Published by Jack Smith on June 24th 2012 | Mortgage
Bad credit mortgage is really helpful for those who have bad history in past, and with the help of t...
 
Most excellent home mortgage calculator plus home buying tips
Published by Andrew Watson on December 30th 2011 | Finance
For a number of people it certainly is very much common to look around for best mortgage calculator....
 
Commodity Bhavishya provide commodity advice on Gold and Silver tips
Published by Alena on December 24th 2011 | Finance
Commodity Bhavishya provide commodity advice and tips on MCX, NCDEX , Nifty FUT services, legs inven...
 
Good mortgage rates are important for a comfortable mortgage period
Published by Jack Smith on June 22nd 2012 | Mortgage
Get mortgage rates that you can easily pay off even in the future because a mortgage affair can last...
 
The best debt consolidation advice
Published by Fresh Finance on January 19th 2012 | Finance
Many cases of multiple charges, including credit card charges, economical credit score items from lo...
 
Bad credit and mortgage refinance option
Published by Kam Brar on December 16th 2011 | Finance
As people think, it is not easy to get mortgage refinance with bad credit. There are various factors...
 
How can a mortgage loan calculator help you save
Published by Apil Gupta on June 24th 2012 | Mortgage
There would be many of you out there who would be considering taking a mortgage loan for fulfilling ...
 
Find the perfect california mortgage broker online
Published by Apil Gupta on June 24th 2012 | Mortgage
The importance of finding a good California mortgage broker online is paramount in today's times, pa...
 
Why is an adjustable rate mortgage so popular?
Published by Apil Gupta on June 24th 2012 | Mortgage
An Adjustable Rate Mortgage (mortgage ARM, for short), also known as the lender's Standard Variable ...
 
The best mortgage rate is only a systematic approach away!
Published by Jack Smith on May 22nd 2012 | Mortgage
Investigate the property market well and fulfill your dream of achieving the best mortgage rate for ...
 
Understand and consult bad credit mortgage rates
Published by Jack Smith on July 23rd 2012 | Mortgage
The people seeking bad credit mortgage rates first require to conduct complete research and pay atte...
 
Exploring best adjustable mortgage rates as per expectations
Published by Jack Smith on July 23rd 2012 | Mortgage
The act and need for searching best adjustable mortgage rates is common in the world, where people s...
 
Fall in mortgage rates leads to better home sales
Published by Apil Gupta on July 16th 2012 | Mortgage
Riding high on the phenomenally low mortgage rates, there has been an increasing demand for new US h...
 
Adjustable mortgage rates opening paths for money saving
Published by Jack Smith on July 25th 2012 | Mortgage
In the field of finances, where Adjustable mortgage rates are becoming the most picked choice for al...
 
Appeal for best adjustable mortgage rates
Published by Jack Smith on July 25th 2012 | Mortgage
In the field of getting adjustable interest rates via the options of best adjustable mortgage rates ...