Tuesday, January 13, 2009

Mortgage for first time buyer

Everyone dream of getting a own home, but lack of finance stop us doing so. This is when we can take help of mortgage to fulfill our dreams. Buying a home is one of the biggest financial engagement we ever make, so it's very important to get it right.

The first thing that you need to calculate before going for a mortgage is how much you can afford. Generally, a borrower need to put down a deposit of certain percentage to secure the loan, however, in some cases you can also get 100% mortgage. There are very few lenders who offer 100% mortgage. As a first time buyer it is advisable not to go for 100% mortgage, as the lender may charge a high interest for that.

There are many types of mortgage available in the market.

Fixed rate mortgages
Tracker mortgages
Variable mortgages
Offset mortgages
crapped rate mortgages

(For details about types of mortgages, please contact a mortgage lender or take help of mortgage related sites)

Other things about the mortgage that you should know are costs and expenses. Calculate the monthly mortgage payment by using mortgage calculator. There are also some other fees like mortgage fees, stamp duty, legal fees, land registry, survey fees.....etc. Check for these fees with an attorney and the mortgage lender. You might also need to have an insurance policy, like life insurance, Mortgage payment protection insurance or home insurance. It's up to the lender to ask for the insurance. As a first time buyer you may need to consider this.

Before you finalize a deal, check the interest rate with few mortgage lender, so that you can consider the best offer.

Calculate your monthly mortgage payment here:

1 comment:

Oskar schiffer said...

grt one..specially the calculator....easy to calculate.