Posts Tagged Mortgage

Home Loan management

We are a family of five. Me, my wife and my three children.  My eldest son was in 2nd year of college when we decide to buy our own house. I and my wife are both working. That time we have our savings.  So we decided to buy our own house.  That house was payable within 10 years.  And we have already on our third year of payment.  My next son will be graduating in high school and will take up medicine.  At first we still can afford to pay our monthly amortization.  The time comes when we have a hard time to pay that amortization. With our past mistake we are having bad credit ratings. We are not prompt anymore in paying our amortization because we are concentrating for the tuition fees and other needs of my two sons in their college.


As we are failing to pay our monthly amortization, they charged us a high interest for the delay of payment.  What I did is I asked my friend about a Mortgage Lending.  Because I know that he is also applied for that.  He recommended me that I should apply for the Home Mortgage Lending Agency they applied for.  He told me that I will not have a hard time to pay for my monthly dues with them.  He told me that they offer two kinds of mortgage.  He chooses to have the adjustable rate mortgage.  The first year of payment, the interest remains the same.  Some problem with the adjustable rate mortgage is that the buyer becomes used to that low mortgage payment.  When the rate changes the prime rate plus a certain extra percentage, payments can double or even triple making it hard for homeowners to afford the rise.   The second type is the fixed rate mortgage.  With this type of mortgage, since it is the most common type of loan the interest rate when applied for a loan was lock-in.  This will be the charged interest rate thought out the length of the mortgage usually fifteen years, twenty years.   It covers the portion of the interest and a small portion of the principal for your mortgage payment. Some time low down payment are key part of this option.


I prefer to choose the fixed rate mortgage, because I think it would be easy for me and my wife to pay for that. I asked my friend to go with me and I will apply for Home Mortgage Loan soon.  Now we will have no problem anymore and we will still have our own house. 

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