Family Issues

Just like there can be one and only one person meant in this world for you – try watching John Cusack’s Serendipity if you don’t believe me – it is the same banana when it comes to determining which type of mortgage serves as your soul mate.

While your heart may beat hard against your chest when your eyes first set sight on your love of your life, it will be your checkbook doing somersaults when it becomes apparent that he shall be used for exactly the type of mortgage that he can afford.

There is no known and proven way to discover who your soul mate is in this world. That’s why some people use the trial by error method the even out the odds. As you try each flavor and reject what doesn’t appeal to you, you get to develop a clearer picture of your ideal partner. That’s not a bad approach to use when it comes to selecting the right mortgage for you.

And because we’re ever so kind, we’ve decided to cut down the time you’ll spend on finding your mortgage partner by giving you a bird’s eye view of the different types of mortgages. The two major classifications of mortgages are long term and short term. Think of it as choosing the gender of your soul mate. Obviously, only one type would appeal to you, in ordinary cases. But the sub-types of both categories are the same.

Base Rate Tracker Mortgage – Does the likes of Hugh Grant, Daniel Radcliffe and of course, the royal heartthrob Prince Wills, make your knees go weak and your skin tingle all over? Then perhaps, you’ll feel the same with the best rate tracker mortgage. The interest rate of this type of mortgage is largely dependent on the base interest rate of the Bank of England.

Fixed Rate Mortgage – Are you looking for a very conventional and stable type of partner? Usually described as the boy or girl next door? If so, then the fixed rate mortgage may be your ideal loan partner. The interest rate is inflexible and shall not change unless both parties agree to it. This type of mortgage is not favorable usually to the creditor because it doesn’t leave him too much space to move around.

Variable Rate Mortgage – A see-saw type of mortgage, the interest rate leans on wherever the creditor’s pipes lead them to. But if you’ve a good relationship with your creditor, this type of mortgage shall be no problem for you.

Now that you’re familiar with a few types of mortgages, are you ready then to be tied for better or for worse? If so, it’s time to propose! Good luck!

Tags: Credit Union, House Mortgage, Obtaining a Mortgage, House, Buy a House