Understanding mortgages, rates, terms and conditions, is a key part of becoming a home owner.
While mortgage rates are quite low at the moment, they can go up at any time, and have surely done so in the past. What would happen to your budget if your mortgage rate went up 5 or even 10 points? Could you make it work without sacrificing other areas of your life?
The infographic below shows the different types of mortgages that are out there for home buyers to pick from.
From fixed rates, that offer security, to variable that will usually be more advantageous when rates are low, there are many types to choose from.
Read on to make sure you make the best decision if you decide to buy a property. Then use a mortgage calculator to see how rate fluctuations would affect your monthly payments, and the impact of making additional payments to your mortgage. It does add up!