Lending Specialists is a leading Mortgage Broker that provides access to the best Mortgage Interest Rates .
In simple terms, a mortgage (or mortgage loan) is used by purchasers of real property to raise funds to buy real estate; or by existing property owners to raise funds for other purposes. The loan is normally “secured” by the borrower’s residential or commercial property.
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back this amount over a specific and agreed term through a series of regular repayments. Interest is generally calculated on the outstanding amount and included in these repayments. Interest rates will vary depending on the lender and Lending Specialists will always endeavor to find the best (and most appropriate) interest rate for our clients.
What is the best mortgage rate?
The best interest rate is not always the lowest and may vary between borrowers. What appeals and suits one person may not be suitable for another because mortgages come in many forms and borrowers have differing personal and financial needs.
When choosing the lender with the “ best mortgage interest rates ” you should also consider looking for the type of mortgage that will best suit YOUR financial situation and Lending Specialists will help you with this process.
Here are some different Types of Mortgages:
Two Basic Types
Variable Rate Mortgage
- In this type of mortgage, the interest rate adapts to reflect the changes in the credit market. Whilst the initial rate may be set for a short period of time, it is generally a fully fluctuating rate that will be regularly adjusted as a result of movements in the money market. The interest rate may increase (or decrease) over the term of the loan.
Fixed-Rate Mortgage
- This type of mortgage has a Fixed Interest Rate for a set term, which is often only for a portion of the full loan term. The advantage of a fixed-rate mortgage is that the borrower should be able to budget their repayments over the fixed term period without the concern of a fluctuation in interest rates and therefore repayments. The interest rate remains the same for this agreed term, even if interest rates generally have risen (or fallen) during that time.
These loans often have additional restrictions regarding additional repayments etc.
Other Mortgage Types
Combination or Split
- This type of mortgage loan allows the borrower to split their loan, where a portion can be placed on a variable-rate and the remainder on a fixed rate. If you prefer to protect some portion of your loan against any possible interest rate rises, whilst still retaining some flexibility with the variable portion, this can be a good choice if you.
Interest Only
- In this type of mortgage, the monthly payment is calculated on the interest portion of the loan and there is no repayment of the capital or mortgage balance. Effectively, the original amount borrowed will remain the same for the term of the interest only period.
At the end of the interest only term the repayments normally convert to principal and interest over the remaining loan term. Alternatively you could renegotiate the interest only period or the principal would need to be repaid.
Offset Mortgage
- This type of mortgage is quite popular and is a Mortgage that involves the integration of a variable mortgage with one or more current deposit accounts. The savings on the account can later be used to offset the mortgage balance, thus reducing the amount of interest charged on the loan.
If you are looking for the Best Mortgage Interest Rates , Lending Specialists is the right place to visit!
If you have any questions or would like to discuss further, please do not hesitate to contact Lending Specialists Melbourne on (03)8805-1800 or email barry@lendingspecialists.com.au.
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