Having a home that can be called their own is the dream of every individual. However, it is undeniable that not all individuals have the means to pay their dream home with cash. This is when applying for a home loan because another option. However, there are plenty of home loan choices available at present. So before you shop for homes say for instance, Lake Oswego homes for sale
listed in quality Lake Oswego real estate
listings online and offline, it would be ideal to become aware of the different loan options present in the market.
Most Common Home Loan Choices Available
â€¢Â Â Â Standard variable loan â€“ Generally, these loans are flexible coming with attractive features like additional repayments and offset account features.
â€¢Â Â Â Basic variable loan â€“ This sometime comes with no feature at all or if there is; most likely it would only include the most basic features of a standard variable loan. The good thing with this loan is that it comes with low interest rates.
â€¢Â Â Â Honeymoon or Introductory rate loan â€“ In this loan type, the interest is offered at a very low rate within the first twelve months from the time the loan is acquired. Do not be surprised to see soaring high heaven interest rates after the honeymoon period expires.
â€¢Â Â Â Line of Credit/Equity Loan â€“ Borrowers who are allowed to avail of this type of loan are entitled to draw funds via the stored equity of the home. It typically comes with higher mortgage rates, though!
â€¢Â Â Â Fixed rate Loans â€“ In this type of loan, the interest rate is preset and inflexible within the predetermined length of time. This means you will never worry about increase in interest rates as dictated by the market.
By comparing home loans, you will be at the better position of finding out which type of loan suits your financial situation. This will avoid being caught up in the wrong financial situation.