If you’re planning to relocate to Arizona and buy a new house with a mortgage, you will need to know a bit about the different types of loans available in order to pick one that is most suitable for you. There are so many types of mortgages offered these days that choosing one usually requires a professional. But professionals do not really understand your personal requirements and you too need to know a bit about them in order to choose out of the choices he gives you.I have listed some of the mortgage types that are most commonly used:Fixed Rate Mortgage Loan: This is probably the most common form of loan taken. In this loan type you have to pay fixed monthly payments for the entire term of the loan. If you are sure that you will be living in the house for more than 10 years than this is the best type of mortgage loans you can get. Fixed mortgage loans have different terms depending on how fast you will be able to pay back the amount.The following are the most common fixed mortgage loans:Bi-weekly Mortgages: Bi-weekly mortgages are loans in which you will have to pay half the monthly payment every two weeks. This reduces the mortgage term to about 18 years. This will help you decrease the total amount of interest paid over the mortgage loans term since you will be paying parts of the loan a lot faster.Thirty Year Mortgages: A thirty year fixed interest mortgage type is one in which the term of the mortgage is thirty years where you have to pay a fixed monthly payment for the entire term. It is a good option if you want don’t want to pay high monthly payments and fear the volatile market conditions.Fifteen Year Loans: In this loan type the term of the mortgage is reduced by half by paying monthly payments that are fifteen to twenty percent more than the ones in a thirty year loan. This is the best option if you want to pay off your house loan faster at a fixed interest.Adjustable Rate Mortgage loans : ARM’s are becoming increasingly popular because of the adjustable Rate Scheme. In these loan types, the rate changes according to the market rates. The rate of interest for the first three or four years is low at first and later on changes according to the market rates. This is a great option if you initially do not have enough money to pay high amounts on the monthly payments. If you plan to keep the house for a period of only five to seven years, then this is a better option since the monthly payments in these first few years are considerably lower.There are many other types of loans that you can choose from, but these are the two most common loan types taken by people. It is recommended that you hire a professional to help you to choose out of these loan types. You can find a lot of advice online and also hire the services of online brokers to help you find the best deals.
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