The modern mortgage market offers a variety of mortgage loans catering to the needs of homebuyers. The titles and details of these plans can become confusing, especially as new types are introduced continuously. You can make sense of these loan types, however, if you understand the basic principles that govern all mortgage loans. Again, you can look to your real estate professional for assistance.
As you learn more about the types of financing available, you will notice that some mortgage loans appear to have more favorable terms. That may indicate that those mortgage loans are, indeed, bargains (and it does pay to shop around), but usually it means that those mortgage loans could have some feature that is less appealing to borrowers. For example, shorter-term mortgage loans often have slightly lower interest rates compared to longer-term loans. However, the monthly payment for the same amount of principal may be higher because of the shorter term. Variable rate loans usually have much lower interest rates to compensate for the risk the borrower accepts that interest rates will rise in the future.
With over 10 years experience in real estate, you can trust Ed Rippee to help you navigate the mortgage loan process. Call Ed Rippee ReMax today at (816) 866-5043 to learn more about the financing options available to you in the Kansas City Area.