We know that there are different types of mortgage loans, however, when you are at the point of buying a home, you need to know what type of mortgage is best for you.The loan offers available from mortgage companies today are extensive and varied. However, despite the multitude of different brand names on the market, we can readily distinguish between four basic types of mortgage loans:(a) Fixed Rate Mortgage Loan – In this type of loan, the interest rate remains unchanged throughout the life of the loan, i.e., the tax payable on the loan is kept constant. This gives prospective home owners some level of confidence that if interest rates go up, their loan will not be affected.On the other hand, one obvious drawback of this type of loan is that, if interest rates fall, they may not benefit from it.Another feature of such loans is that they usually have a set term (usually 12 to 15 years) and the early termination fee is higher. It is important to remember this fact if you plan to use part of the future savings to reduce the loan amount or period.(b) Variable Rate Mortgage Loan: This is a loan type in which for the first year (or for the first period), the interest rate is agreed. For the remaining years, it keeps on changing according to the reference rate agreed in the contract, adding a spread that varies depending on the conditions set out in the terms of the agreement.The main advantage of this type of loan is that you benefit from the interest rate cuts.This type of loan is characterized by a longer maturity period which can be as long as 25 to 30 years, and the deferred sales charge is usually lower than is the case with fixed interest rates.(c) Joint Interest Mortgage Loan: Here, the interest rate remains fixed for two, three or more years combined, and this is followed by another period in which it is variable and is adjusted according to the prevailing conditions in the market.This mortgage plan combines both the merits and demerits of fixed and variable loans. Under this plan, the repayment terms and the early termination fees are usually similar to that of the variable rate mortgage loan.(d) Flat Fee Mortgage Loan: As the name implies, it is a loan type characterized by a flat rate. It closely resembles the fixed-rate loans considering the fact that the customer always pays the same rate regardless of changing interest rates.The one major difference is that if rates do go up, instead of the borrower paying more fees, the repayment period is extended; and if the interest rates fall, the repayment period is shortened.The main disadvantage of this loan type is the level of uncertainty associated with it, as the actual term of the loan is unknown. However, its chief advantage is that you are pretty much guaranteed that the fee will not change during the lifetime of the transaction.
Mortgage Loans – 4 Different Types of Mortgage Loans to Choose From
Top 5 Japan Travel Tips
The top 5 Japan travel tips and advise are shown in the below content. Even though it seems very simple but somehow people might forget about it. So hope this serve a small reminder to you.1. Time Difference
Japan time zone as if set to GMT it is +9 hours. So it is 1 hour faster than most of the Asia countries.2. Language
Japanese is still the main language that widely use in Japan public, private and government body. A lot of younger generation people do speak English but they are speaking in Japanese mixing English term with very strong Japanese pronunciation flavor, so it is very strange or sounds funny when you first time hearing this. No worries, helpers or workers in tourist spots, hotels and restaurant are all well trained with English speaking skill and fluency. If worst come to worst, you still can use your pen and paper to draw some pictures or direction on map that wish to go.3. Power Source & Plug
Japan is using 100 volt, with two straight thin flat pin, it is different from some of the Asia country and different to Europe countries too. Digital appliances should be supporting 100 volt – 240 volt, just to make sure, you need to counter check your digital travel gear. Also you need to equip with universal power plug just in case.4. Tap Water
All the while Japan tap water is drinkable, just recent years of heavy pollution, some places tap water is no longer drinkable, so before you drinking any tap water either from hotel or public places, need to make sure is there a any sign saying it is directly drinkable or not.5. Weather
Japan has four season, each of the season really vary a lot in term of temperature and rain level. It will impact a lot if you did not pay much attention on this and bluntly plan your trip. Spring season is from March to May, average temperature is 14.5 degree Celsius, normal rain level. Good to have umbrella bring along your trip. Summer season is from June to August, average temperature is 27.7 degree Celsius, most heavy rain fall during this season, must bring a long umbrella. Autumn season is from September to November, average temperature is 18.8 degree Celsius, not much rain at this season, but the temperature different a lot during day and night, need to prepare a jacket. Winter season is from December to February, average temperature is 7.6 degree Celsius, will have snow fall sometimes in January, so need to prepare winter clothing. However inside building or public transportation there will be heater, so advice is to wear a long sleeves clothing and pair with winter cloth jacket, so you can remove the jacket and more comfortable at indoor.