How to Choose a Mortgage?
Today’s lenders are becoming increasingly innovative at providing mortgage
products to meet every need of the market.
Consumers enjoy the benefit of having a big pool of different mortgage
products although we all know it is not easy to make the right choice simply
based on limited information from mail pieces or other marketing material.
A good understanding of basic mortgage structure is a key to determining
what to choose from a variety of mortgage products.
We can divide mortgage products into two categories based on type of
mortgage rate. One category is called variable rate term product and the
other is called fixed rate term.
We can also differentiate products based on type of mortgage contract. We
call one type Open Term Mortgage and the other is closed term.
Traditionally we define a conventional mortgage as one with the original
balance less than or equal to 75% of the property value. A high ratio
mortgage is one with the loan amount over 75% of the property value.
Almost every mortgage product is built on the basic structure described
above. You will want to determine the mortgage structure that works best
for you before you choose a product from big selection.
It is always a good idea to seek professional advice when choosing a
mortgage. Mortgage specialist is specialized in finding a best mortgage plan
tailored to an individual client’s needs.
Please feel free to contact us for a free consultation.
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