When you’re choosing a mortgage, deciding which type of deal to go for is a key decision, so it’s really important to understand how they work. After taking out your mortgage, you’ll pay an initial interest rate for a set period of time. This rate can be fixed (guaranteed not to change) or variable (may increase or decrease).
TYPES OF MORTGAGE REPAYMENT
With most mortgages available today, there are broadly two types of repayment options for the borrower:
MORTGAGE INTEREST OPTIONS
Once a borrower has chosen a mortgage repayment model, they will then need to choose a mortgage product. There are several options available to borrowers to ensure their needs are met.
Buying a home and having a mortgage is a big financial responsibility. Understanding how your mortgage and the options you have available to you is an important part of being a homeowner.