| A mortgage is a loan that is paid back
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| | of time. The borrower can also choose a
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| over a set period of time. Taking a
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| | bi-weekly payment option rather than a
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| mortgage therefore involves paying a
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| | monthly one. This reduces the period of
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| certain amount as interest in addition to
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| | the loan, and thus results in lower
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| the principal borrowed. Mortgages can be
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| | interest costs.Various kinds of
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| broadly classified into two types based
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| | adjustable rate mortgages are available.
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| on the interest rates. These are fixed
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| | In the case of a capped interest rate,
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| rate mortgages and adjustable rate
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| | the maximum interest rate to be paid is
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| mortgages. Most financiers currently
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| | fixed. The lender cannot demand more than
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| offer a number of variations of these two
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| | this, even if interest rates go up. In
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| basic types of mortgages.The monthly
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| | the event of interest rates falling,
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| interest payments remain unchanged
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| | however, the borrower pays
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| through the whole term in fixed rate
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| | less.Discounted rate mortgages have an
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| mortgages. Thus the borrower does not
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| | initial predetermined period when the
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| encounter the problem of having to make
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| | interest rates are reduced. At the end of
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| unexpected large payments. Fixed rate
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| | this period they revert to the standard
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| mortgages are usually taken for 15 or 30
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| | rate. First-time buyers may find this an
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| years, although other terms are also
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| | attractive option. In variable rate
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| possible.Although the monthly payments
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| | mortgages the rate of interest changes
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| may be lower, the borrower pays more as
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| | with fluctuations in the bank rate.Thus,
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| interest on long-term loans as opposed to
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| | a wide range of options is currently
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| shorter-term loans. A short term also
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| | available for those who wish to apply for
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| means that the buyer gets full ownership
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| | a mortgage.
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| of the property within a shorter period
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