|
Deferred Mortgages
With a deferred rate mortgage the interest you repay on the mortgage is divided into two parts. One part you pay as you would normally and the other part is added to the remainder of the mortgage capital. This means you pay a lower than usual interest rate for a set period of time at the start of the mortgage term. The interest that you do not pay during this fixed period is added to the outstanding mortgage, or ‘deferred’.
The advantage of this is that you can save money by paying a lower monthly mortgage payment at the start of your mortgage term when you might be short of funds.
However, on the downside the interest that is deferred will cost you more to repay in the long run because it increases the mortgage capital meaning the interest charge will be larger after the deferred interest period ends.
Deferred rate mortgages are typically suited to young professionals with little money at the start of the mortgage, expecting a fairly considerable increase in their income during the mortgage term.
Home Cover - Home Insurance - Provides insurance products including home, building and home contents. Provides tips and advice for first time buyers, household bills and mortgages. Online quote facility and the latest home insurance news.
House Mortgage - Home mortgage means that it is a temporary and conditional pledge of property of the debtors as a security with the mortgage banks for the performance of an obligation or the repayment of a debt.
Internet Home Loans Australia - Internet Home Loans specialises in home loans, online finance, credit problems, low doc home loans and debt consolidation. Contact an Internet Home Loans mortgage broker or lender today.
North Cyprus Property
Advertisements
Mortgage News Archives
|
