By the time you finish paying off the mortgage on your home, you'll have paid more in interest alone than the actual purchase price of the house. For example, if you borrow $125,000 at 8% for 30 years, you'll end up paying over $205,000 in interest, plus the $125,000 you borrowed. Your $125,000 house has cost you $330,000! so it makes sense to shop wisely for the best mortgage, since it will probably be the biggest financial decision of your life.
A mortgage is a mortgage is a mortgage, right? Wrong! There are many mortgage products on the market now, so it's important for you to do your homework to determine which type is best for you, and which bank, savings and loan, mortgage bank, finance company or credit union offers the best terms for that type of loan.
The Internet makes this process easier. You can find out how large a loan you qualify for, compare loans, search for the lowest rates in your area, and in some cases, apply online.
Although there are many mortgage products available, most fall into one of several general categories:
- Fixed Rate
- Adjustable Rate
- Balloon Mortgage
- Jumbo Loans
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