Mortgages are the ideal solution for any homebuyer without significant funds. The primary concern for most people, however, is how to repay the loan. There are various unique features offered by mortgage lenders to help homebuyers repay their loans.
Apart from paying the loan quickly, some features give you extra cash. These unique features might be part of your mortgage from a reputable Kingsport lender, such as Mortgage Investors Group. Here is a simple guide to help you understand these features.
In this option, you get some cash at the close of your mortgage. The total sum of your cashback might be a portion of your loan amount or be a fixed amount.
A cashback mortgage gives you extra money to spend on repairs or furniture for your new home. These mortgages however typically have higher interest rates compared to other options.
In offset mortgages, your home loan and savings accounts are linked. Your savings contribute to reducing your loan hence you only pay interest on your loan amount minus your saved amount.
It is an ideal choice for homeowners with reasonable bank balances each month since it allows them to pay their loans faster. Offset mortgages, however, do not often offer their benefactors access to discounted mortgage deals.
Current Account Mortgages
These mortgages work similarly to offset mortgages. Current account mortgages, however, link your mortgage and current account rather than the saving account. You will pay off your home loan faster with this option, but you will often have no access to discounted rates.
Some conventional mortgages also offer options to overpay, underpay, or take a payment holiday to help you with your repayment. With all the unique features available, you can be sure a mortgage will not turn into a financial encumbrance for you. Plan your budgets and pick the best feature for your financial situation.