Mortgages come in different types to suit different homeowners and buyers. A section of the previous article has discussed the basic types of mortgage plans, now, this article will talk about the other types of mortgage plans which may be a part of the list from your San Diego Mortgage Broker. The first on the list is:
Unlike the fixed-rate mortgage that has a lifespan of more than 15 years, a balloon mortgage is designed for a short period of time (around 10years). Another feature is, balloon mortgages require low payment (for interests). As good as it sounds, it may be a risky mortgage type for many borrowers. San Diego, CA information can be seen at this link.
This loan type is majorly for the elderly and it allows homeowners access a loan on home equity. This money can be withdrawn as a whole and then paid back in instalments. In case of death of the homeowner, the lender has a right to take back the amount owed (from the death date). Also, if the homeowner decides to vacate the house, he/she has to pay back the mortgage loan. The only con of this plan is that it may drain all the equity of elderly homeowners if not properly used. Discover facts about Selecting the best Mortgage plan 101 – Common Types of Mortgages.
In conclusion, an important factor to consider is the mortgage plan type. Luckily, there’s a wide list of option to choose from. Whichever choice you make, compare rates and pay more attention to the fees and commissions.
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