Friday, 27.10.17 (403 views)

Choosing a Mortgage

So you have decided to buy a house and now looking for a suitable mortgage? Well, choosing a mortgage is now a daunting task when you have thousands of options. Still, you have to make an informed choice because a mortgage is not a simple matter or not just a matter of one day. It will be with you for 7 to 8 years or more.

What we understand by the mortgage is that it allows us to buy a home or a commercial property. It is a kind of debt for which we need to pay back. So, it can be said without any doubt that mortgage is long-term financial commitment where you have to consider few aspects such as expenditure, income, growing family needs and the price of a home or flat that you cannot afford.

If you are getting confused and cannot decide which mortgage option to choose, seek the help of a financial advisor who holds knowledge and experience in this field. A professional consultant will study your case in detail and suggest you a practical solution that proves fruitful for you from all aspects such as future prospects, income etc.

Well, if you are not ready to take an appointment with a financial advisor, you can check out some important points which you should consider before choosing a mortgage option.

Points to consider while choosing a suitable mortgage
1.    You first decide how much interest you will be able to pay each month. Remember, you must possess enough money to meet your daily requirements. Therefore, adopt a practical approach and create a list of your monthly income and expenditure. In your list, you also should not forget to include your future expenses such as if your son or daughter start their college after 3 to 4 years etc.
2.    Always make an effort for doing a comparison between mortgage packages and lending rates. To do this task better, you can take the help of some online tools. There are many online tools available for doing such comparison.
3.    Next important step is choosing a reliable and reputed mortgage company. It is vital for securing your property. Do a complete background check about the company you are going to choose and make sure they have no legal criticisms against them.  Always prefer to choose an institution you are familiar with. For example, your known bank or financial institution.
4.    Fix the loan duration very intelligently. Considering the interest rate you are liable to pay, if you choose a long duration, you may have to pay a substantial amount as interest. If in any case, you find it difficult to fix, a loan officer can help you in this regard.
5.    Read the agreement carefully before taking any decision. If the mortgage option you choose has an insurance coverage, don’t forget to avail it. This will protect your family from any unforeseen accident.

Along with these five points, few expert’s points has also been mentioned that can help you 
taking the right decision. Let’s have a look at them-

According to experts –
  • You first know what type of mortgage options are available. Go through each and every option carefully and then decide whether you should go for a fixed mortgage option or an adjustable one.
  • You must know your needs first. Depending on your requirements, you can finally decide what type of mortgage option you need and what not.
  • Another important point is you must know the pros and cons of each mortgage option. This will help you choosing the ideal mortgage as per your need.
Well, these are the points you should consider while choosing a mortgage option. This is a vital decision which you can’t take hastily. A wrong decision can lead you up to losing your home as the mortgage is a long-term commitment and nonpayment can create serious financial problems.

For getting more information on mortgage, keep checking the posts on
Bigpage Bangladesh. If you would like to share your views with us, feel free to write in the comment section below. We will be happy to hear from you.

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