By Nelson Smith
Fixed RateMortgage
The two basic types of loans are the fixed rate mortgage and adjustable rate mortgage.Fixed rate mortgage can be fixed over set period of time.You need to take into consideration if interest rate's go up over that period you need to budget the extra funds for that has well.The downside to a fixed rate is if interest rates go down you could be paying more than you should for your mortgage.
Adjustable Rate Mortgage
adjustable rate mortgage means that when you decide on a adjustable rate mortgage it could go up and it can go down with interest rise's.If you are on a tight budget l would advise either a interest only mortgage or the adjustable rate mortgage.This is a decison you can make when you decide to take out a mortgage deal for your property.
Interest Only Mortgage
interest only mortgage have there place l personally only go for this type of mortgage because it is a cheaper way and you get lower payment's.However in saying this you must have way of paying this mortgage off because you only pay the interst on the loan nothing else so if you borrow $100,000 dollars over what term you decide you will still owe that amount if you don't have a way of paying it back.This is a good method if you plan on buying property under value and selling it on in a fe years the profit is in the property and you haven't paid the earth for the loan.
l found this budget calculator for your bills take a look it free to use l hope you find it usefull this is the link
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