They know all the things related to bank and they have a good contact with the bank. If you take the hüpoteeklaen, you will have to pay them the money with the interest. The interest rates fluctuate depending upon the market condition which changes frequently and also in the real estate market conditions. While these days the real estate market is in a boom and the agents are making a great profit. Before taking the loan you have to know everything about it. There are three types of mortgage loan.
- Convertible mortgage loans: These days’ people are going for the convertible mortgage loans. This type of loan allows people to keep their mortgage loan option open, allowing for more flexibility on the interest rates. You can easily change between fixed and convertible mortgage plan if you have opted for convertible plans. If the interest rates, you find are going too high, you can change it to the fixed plan, and when the interest rates are low, you can come back to the convertible plan, the choice is yours. In this types of loans you will have to pay the interest for a period of time and after that you will have to pay the whole money at once.
- Fixed mortgage loans: Fixed mortgage loan, people take the loan and have to pay certain amount of money, including the interest for a certain amount of time. Basically, it is a long process, it takes like 30-40 years. You will have to pay some amount of money for long period of time in order to lose your loan and make the house you buy completely yours. The disadvantage in this type of loan is that, you have to keep paying for the all the years left even if you can pay them early, you can’t. Eventually, you will notice you have paid much more that the amount you have taken as the loan. If your financial stability is good, you can easily opt for the short time period loan.
- Special mortgage loan: This type of mortgage loan is applicable for very few people. The people who are taking loan for the first time, people with bad credit, widows of the US army forces, etc. can apply for the special type loans.
Almost all the people need home these days, but buying a house is not that easy. You will have to go to real estate agents and some house owners who want to sell their house. Visiting those real estate agents is a headache, they will take you from one house to another located at different locations. And when you finally found your house, they throw their bomb of high price and their commissions, which you will have to pay. But if you are desperate to buy the house, these real estate agents comes very handy. They can help you get the loan you need to buy the house.