Tip & How-To about Finance

What are the Different Types of Mortgages The world of mortgages can be really confusing. There are so many different types and the terms and conditions vary between lenders and individual customers. Here is a very basic outline of some of the main types of mortgages that are available. Fixed-Rate Loans Fixed-rate loans are loans where the interest rate says the same for the whole duration of the loan (ie 25 years). This type of mortgage is more stable than others as it's not based on market conditions and allows you to budget for your mortgage without the risk of costs rising. Adjustable-Rate Loans Adjustable-rate loans have interest rates attached to them that can change based on an index reflecting market changes. Sometimes these kind of mortgages start out with a lower interest rate than fixed-rate loans but the payments can go up or down causing uncertainty to the customer. Interest-Only Loans Interest-only loans involve paying only the interest costs that have built up on the loan balance. Usually these interest only payments carry on for a number of years and then the borrower starts to pay for the actual loan amount as well.

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What's An Installment Loan?


It is a loan repaid in an agreed series of payments, or installments, of some period of time. The payments may be made weekly, monthly, or some other agreed period, over a period of time which may be a few months, or many years.

A mortgage is a type of installment loan.

The repayments may be made against the principal (the amount loaned), principal plus interest (most common arrangement), or some other agreement.

It is possible for loans to eventually make the borrower repay a lot more money than the amount borrowed, if care is not taken to understand the agreement.

Sep 29, 2015 | The Computers & Internet

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what is stratatitle


Strata title is a form of ownership devised for multi-level apartment blocks and horizontal subdivisions with shared areas. The 'strata' part of the term refers to apartments being on different levels, or "strata".

Strata title was first introduced in 1961 in the state of New South Wales, Australia, to better cope with the legal ownership of apartment blocks. Previously, the only adequate method of dividing ownership was company title, which suffered from a number of defects, such as the difficulty of instituting mortgages. This term also applies to house-type strata title units in Australia.

Oct 30, 2012 | wikipedia.org

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