There are three basic types of house mortgage loans offered by lenders. Understanding these basic mortgage types will help you choose the best option for financing your purchase.

Fixed interest mortgage is the traditional mortgage loan in which the loan is amortized for the entire loan period using a constant pre-decided interest rate. You have to pay equal monthly installments for the loan period. For the first few years, the interest payments are front-loaded and only a small fraction of the principal is paid from these payments. [Read more…]