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:

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

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

Article Source:

Related Mortgage Articles Subscribe to RSS

Remortgage advice and best remortgage deals UK
Published by Catherine Johnson on April 9th 2012 | Mortgage
If you are not happy with your existing mortgage then you can easily consider remortgage option. It ...
Tips to taken into consideration while choosing mortgage brokers
Published by Geno on March 28th 2012 | Finance
Majority of the home buyers get struck off when it comes to mortgage loans. Lack of knowledge about ...
Search well in the market and get best mortgage rates
Published by Jack Smith on June 25th 2012 | Mortgage
For getting best mortgage rates from the market, you need to pull up your shocks and search well in ...
Be informed about Colorado mortgage or Denver mortgage and make a wise decision
Published by Serena Woods on February 15th 2012 | Mortgage
Being informed is never bad especially when you need to make an important financial decision....
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...
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...
Your guide to getting the best mortgage rates
Published by Jack Smith on April 18th 2012 | Mortgage
A systematic and well guided approach will certainly assist you in achieving the best mortgage rate ...
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...
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...
Financial advice on Capital management
Published by Abhijeet on January 30th 2012 | Finance
The appropriate admonition in looking addition that can advice your business or aggregation to the a...
What is debt advice UK and just how can one get this service?
Published by Deby Suportie on February 15th 2012 | Finance
Debt advice UK has aided many people affected by their debts. Through the years, providers have been...
US mortgage rates hit record low at 3.66%
Published by Apil Gupta on July 16th 2012 | Mortgage
There was a significant drop in the US mortgage rates for 30 year fixed loans...
Consult well about Adjustable mortgage rates before selecting
Published by Jack Smith on July 23rd 2012 | Mortgage
Adjustable mortgage rates are turning worldwide popular because they offer variations on the rate of...
Low interest rate brings cheaper mortgage deals
Published by Sandra Jeux on January 25th 2012 | Mortgage
Interest rates are at the lowest side for mortgages at current time which is leading people of the c...
A mortgage club benefits individual lenders to increase their business
Published by Graves Cruz on June 6th 2012 | Mortgage
We have worked alongside The Buy to Let Business since its incorporation....
The best mortgage rate can make your dream come true
Published by Jack Smith on April 12th 2012 | Mortgage
The best mortgage rates can fulfill your dreams at a dreamlike cost. Get yourself the best deal in t...
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...
Looking for refinance mortgage loan - How to find the right one
Published by Apil Gupta on June 24th 2012 | Mortgage
In case you are looking to refinance mortgage loan for your home, there are many things that need co...
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...
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...