First Home Mortgage Loan

Every person who has ever bought a home with a mortgage knows that by the time the pay off is made on the mortgage more is paid to cover interest costs than the actual purchase price from their house.

For example, on your first mortgage loan, you borrow $125,000 at 8% with a 30-year term. After your first mortgage loan period is done, you will have paid over $205,000 in interest and the $125,000 principal amount you borrowed. A result, your house that is only for $125,000 ends up costing you $330,000 on your first mortgage loan.

This is why, it makes absolute sense that before taking on your first mortgage loan, a little bit of shopping is done. Getting the greatest product for your first mortgage loan is nice and most probably the biggest financial decision you will ever have to make.

All right. So let's get owing to the basics. Most people feel like a mortgage is a loan. Well, it's not. A loan is something the lender gives you. A mortgage, alternatively, is something you give to the lender.

Now if you take on your first mortgage loan, it's imperative that you know what types of mortgage products are being offered in the market. Below are some of the two first mortgage loans.

Fixed Rate for your first mortgage loan

If you are thinking of getting your first mortgage loan, a fixed rate mortgage can often be the proper choice for you. In a fixed rate mortgage, interest rates are set all during the entire loan term. This way to take on your first mortgage loan, your monthly interest won't increase or decrease. The interest of your first mortgage loan will remain the same all during the loan period, usually 30, 20, 15, or 10 years.

Getting a fixed rate first mortgage loan has you giving towards a predetermined monthly payment rate. Payments for your first mortgage loan interest and principal will never change. Having this mortgage for your first mortgage loan is especially advantageous if over time, rates of interest suddenly go up. Plus, down payment if you get this as your first mortgage loan has the potential to be as low as 5% of the original buying price.

Adjustable Rate First Mortgage Loan

If the projected rates of interest in the market are intending down, then an adjustable rate mortgage might just be the proper alternative for getting your first mortgage loan. Adjustable rate mortgages are mortgages where the rates of interest and repayments depend on the rise and fall of rates in the market. This style loan is especially a good choice for a first mortgage loan also if you expect an increase in your overall sales over the following few years.

Balloon First Mortgage Loan

If you do not plan on keeping home for long, then getting a balloon first mortgage loan will do the trick for you. A balloon first mortgage loan offers lower rates of interest compared to a conventional loan. The only downside to this type of mortgage for a first mortgage loan is that a huge amount is due in five to 7 years. If you don't have funds to cover that amount and you are still in the house by completion of the loan term, you might have to get another loan in order to cover the cost for that first mortgage loan.

To get more helpful information on home loans go to this site: http://home-loan-mortgage-refinance.info/