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Higher rate types of home mortgage loans

This article will tell you which home mortgage loans have a higher rate then other types - usually for good reason of course!

Choose a "higher rate" type of home mortgage loan to learn about:

Fixed rate home mortgage loan

This type of home loan - the fixed rate mortgage loan - has a higher mortgage rate than it's opposite, the "adjustable rate mortgage loan."

Fixed rate mortgage loans will always have rate that's equal to or higher than the economy's prime rate, where adjustable rate mortgage loans will have a rate that's lower than the economy's prime rate. But even though the fixed rate loan has a higher rate, it's for a good reason.

A fixed rate home mortgage loan will make your 'cost of borrowing constant.' You'll always know "how much your home mortgage loan" is costing you. Your mortgage payments will be regular! Consistent! Secure! Versus: the adjustable rate loan. With an adjustable rate mortgage loan, you won't know when your cost of borrowing could go up. So yeah, you get a lower rate with an adjustable rate loan, but you get lower stress with a fixed rate one!

So what to do? Instead of an adjustable rate home loan, get yourself a fixed rate home loan at a slightly higher rate - so you can have a constant cost of borrowing for your entire mortgage term.

Apply online for your mortgage!

Open home mortgage loan

Open home mortgage loans have a slightly higher rate than their opposite, the "closed mortgage loan."

When you get a closed mortgage loan, you will get a lower rate than you would with an open home mortgage loan. But being open has it's perks!

By getting an open home mortgage loan, you'll be allowed to pay off a chunk of your mortgage for free, or completely pay it off for free whenever you have the urge or ability to do so, And that can be a blessing.

If you all of a sudden have an income surge or come into a good bundle of cash, you could pay-out your open home mortgage loan right away, without paying a financial penalty to your lender for doing so. And when you pay-out your mortgage as soon as you can, you can save yourself a lot of cash.

Mortgages always end up costing you twice as much as your home property is worth: even mortgages with a low interest rate, even a 2% interest rate. That's what compound interest does to a loan: it makes it a little more expensive than meets the eye.

So by hooking yourself up to an open mortgage loan, even though it's at a little higher rate, you'll have the freedom to pay it out "whenever" and save yourself some cash.

Apply online for your mortgage!

Long term home mortgage loan

Another type of home mortgage loan that has a higher rate is the long term mortgage loan.

A long term mortgage loan is a loan that has a term length anywhere from 6 years to even 25 years. A "short term" mortgage loan on the other hand has a term length from 1-5 years. A short term mortgage does have a lower rate than a long term mortgage does. But the long term home mortgage loan can be a little bit easier to handle.

Long term home mortgage loans are loans that you don't have to renew or refinance very often. Which means, you don't have to "deal with them" very often. You donÍt have to adjust them, modify them, talk to them, or even think about them for a really really long time. So if you had a long term home mortgage loan, for say 10 years, you could go 10 years without touching your mortgage. And that's a stress-free low-maintenance mortgage if I've ever seen one.

So choose a long term mortgage at a slightly higher rate, and reap the benefit of being able to ignore it for at least a good decade at a time.

Apply for a mortgage loan now!

Get more info on rates for home mortgage loans, by contacting The Mortgage Store Online's brokers. Just use the rate quote form or call them at 1-866-880-2577.

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