With the ever-evolving finance market, the market offers a plethora of mortgage solutions. Most people in urban areas are today surrounded by the many options pushed through by aggressive marketers.
However as a smart consumer, it is important to safeguard yourself from the marketing hype and select an option that is best for you. There are some important points that you must consider before zeroing in on the appropriate mortgage solution.
Is the rate fixed or variable?
While both options have their pros and cons, in case of fixed model, you get the benefit of being able to better plan your finances and payment schedule. However the variable model might be of help to you in a fluid market situation wherein you can get the benefit of rates getting lowered.
Flexibility of payment schedule
Some creditors allow the flexibility of increasing the regular payment amount to suit your requirement. This greatly helps you in modifying your payment schedule as per your current financial status.
The option of prepayment
Your income level will not be the same at all times. There would be times when you feel able to pay back a huge amount to reduce your liability, instead of being bound for a long contract. In fact, in some contracts, you end up paying a penalty for prepayment. It’s always best to select a creditor that allows trouble-free prepayment.
Is your mortgage protected against inflation?
This is perhaps the most important point that you should consider while selecting a mortgage solutions company. The inflation level can vary highly in a volatile economy, and this can play a key role in changing your financial status. You need to ensure that your mortgage payment schedule and contract are such that they secure you against inflation and never blow a hole in your pocket.
Keeping the above factors in mind will allow you to select the perfect mortgage solution that is best for you. Do not get carried away with misleading ads and marketing gimmicks. Always make a wise choice by doing research and asking the right questions to the mortgage solutions representative.
