There are many people who dream of starting their own families with new homes. There is always that dream of the shabby sheik house with the white fence and a wide lawn, with dogs and your children running around. Now, it is already possible for people to achieve that dream by getting a mortgage loan. For beginners who are still do not have any idea what a mortgage loan is, a loan will afford them to buy a new house without having to shell out a large amount of money. This type of loan can be payable for a number of years. Depending on the terms, it can usually be a 15 year term or a 30 year term when it comes to payments.
There are two kinds of mortgage loans that you can avail of. There is the fixed loan, and there is also the flexible loan. A mortgage with a fixed loan, you will have to get a plan that has a fixed rate, one that allows you to pay a fixed amount annually. Usually, the interest rates are also fixed. This is one that most people prefer since they do not have to worry how much to allot every time the payment dues come in. For the flexible loan, it is wherein plan holders get to choose what would be the mode of their payments. Although this can be an advantage, one disadvantage of this is that the interest rates may also vary, depending on how the stock market is going to play.
It would be wise for you to get a loan if you’re planning to stay in your new house for a long time. However, if you are only planning to stay for a few years only, then getting such kind of loan may not be entirely be a good idea.
If you belong in the lower economic class, then you can avail of a home assistance loan wherein they pay the required down payment for you to acquire your house and its closing payments. So that even if you are an average wage earner, it’s still possible for you to get a house of your own. Usually, the rates offered to people who are low wage earners are lower and that depending on their government, they can be assisted with the payments.
These are just some advantages of getting a mortgage loan. If you are planning to build your home, getting a loan is not a bad idea.