Sniffing Out Discounted Mortgages

These days, mortgages provide the answer to our house-buying woes. These days, there are many kinds of mortgages that may be available to us. Most commonly, we have a choice between fixed rate mortgages and adjustable rate mortgages. The former type of mortgage charges a fixed rate of interest that will remain at a constant rate for the entire period of the loan. The latter, as the name suggests, charges an interest rate that fluctuates depending on the prevalent market rates of interest. Over the years, a majority of people have chosen to go along with the fixed rate mortgage type. Given that mortgages usually have long tenures, it is a good idea to try and secure a deal that charges a fixed interest rate. This makes it easier to plan one’s budget later on, and it also provides a sense of security to the borrower at times when interest rates seem about to rise.

This is not to say that mortgages with adjustable rates can never be a good bet. If one is lucky, one can avail of significantly lower rates at the time when the interest rates are low. This is an advantage that is absent in the case of fixed rate mortgages. The latter guarantees that the interest rates...