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Home Loans Types

There are many different home loans types and it is important to know which loan is right for what situation so that you don't get stuck with a loan that was not right for you. The first one is a refinance mortgage. The second loan is a second mortgage. It is a mortgage that is usually much smaller than your first mortgage and since the company loaning you the money has to take the second position on your deed they will charge you a higher interest rate for the loan. The third loan is a line of credit. The last loan we are going to discuss is a no income verification loan.

If you are a first time home loan borrower, the mind-boggling range of home loans can leave you overawed and confused. Pros: lower interest rate means short loan repayment term. If the interest rates fall, your minimum repayment amount will fall as well. Standard variable rate loans: A popular home loan type in Australia, this loan is offered by most lenders. Again a variable interest rate loan, it offers some more features and flexibility than basic loan but the interest rate is more as well. Some features include redraw; the choice between variable for fixed rate, making extra loan payments without attracting penalty and portability. Cons: higher interest rates translate into higher loan repayments. Cons: You over pay if interest rates fall. These loans only have a few features and aren't as flexible as variable loans. You can read other article about Home Loans Bad Credit.