Friday, May 6, 2011

Types Of Home Loans

It is very important to understand the terms and conditions of each kind of loan, so that you can choose one that best suits your needs.
  • Fixed Rate:  Includes a specific loan repayment amount.  This type of loan protects you from any interest rate rises.
  • Variable Rate:  Gives you the flexibility of being able to make extra payments if you wish.
  • Introductory Rate:  Generally, for the first 12 months your interest rates are discounted.  
  • Bridging Loan:  This loan helps you purchase a home if you are currently in the process of selling your current home, but have not yet finalized the transaction.
  • Interest Only Loan:  In this type of loan, you are only making monthly payments on the interest.
  • Principal & Interest Loan:  You will be paying off the interest and actual principal owed on a monthly basis.

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