A mortgage is a kind of loan that you turn to when you decide to buy a home. Home loans in Salt Lake City offered by mortgage companies such as Altius Mortgage Group provide you with the lowest rates and give you the most comprehensive deals you need in the process.
When you get a mortgage, you pay for the principal amount plus the other payables such as tax, insurance and interest. For your guidance, here are some of the different forms of mortgages that you should know.
Fixed for 30 Years
The most popular payment mode is the 30-year fixed mortgage, where you will pay a flat and fixed rate for 30 years. It means that you will pay the same amount of money month after month.
This kind of mortgage form is good for you when you purchase your home at the time that the interest rate is low and predicted to be rising in the next few years. It is also ideal if you are planning to stay long in that home.
Fixed for 15 Years
The good thing about this form of mortgage is that it gives you an interest rate lower than the 30-year fixed mortgage. It will allow you to pay the loan fast and you can quickly build equity. This is ideal if you want to pay off your mortgage in a shorter period.
In this form of mortgage, the rate is adjustable depending on the market. So payment varies from time to time. In some cases, you can also have fixed and adjustable types combined, where you will pay a fixed rate for the first 3, 5 or 7 years and adjusted yearly for the rest of the loan term.
There are a lot of things you need to know before buying a home to make sure that you are making the right decision at the right time. You now know the different forms of mortgage to help you in the process.