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 loans appear to have more favorable terms. That may indicate that those loans are, indeed, bargains (and it does pay to shop around), but usually it means that those loans could have some feature that is less appealing to borrowers. For example, shorter-term 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.
© 2001-2017 Reliance Network and RE/MAX of New England.
All rights reserved. US Reg. Copyright TX-5-910-991, TX-5-910-992, TX-5-910-993, and TX-5-910-994.
Each RE/MAX® Office is Independently Owned and Operated. Equal Housing Opportunity.
RE/MAX of New England agents are licensed in the state of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.
Listing data is derived in whole or in part from the Maine IDX & is for consumers'personal, non-commercial use only. Dimensions are approximate and not guaranteed. All data should be independently verified. ©2017 Maine Real Estate Information System, Inc. All Rights Reserved.Site Map