A Quick Guide to Mortgages With Special Features

Mortgage loan agreement paper with house shaped keyringSome mortgages come with some unique features. These features are meant to help you pay for your loan quicker than the standard ones; therefore, improving your cash flow.

Are you planning to apply for a mortgage in West Jordan anytime soon? This guide provides more information on offset mortgages, current account, and cashback mortgages.

Offset Mortgages

With this type, your savings account is linked to the mortgage. The advantage of this mortgage is that you pay for your mortgage per month just as the normal one, and you can still withdraw your savings whenever you want. The downside is that you cannot get discounted rates.

Cashback Mortgages

Here, you get some cash once you take out your mortgage. Mostly, the cashback is a small portion of the loan amount that you borrow. However, it is important to note that the cashback is offered after completion of the payment and not before. The advantage of this mortgage is that you will have a lump sum amount to help you furnish your home after finishing your mortgage. The downside is that this mortgage is more expensive than other mortgages in the market.

Current Account Mortgages

This type of a mortgage is similar to offset mortgage, but with this one, the current account and the mortgage are merged. For instance, if your mortgage amount is $100,000.00 and your current account has a balance of $1,500.00, your statement will indicate that you owe the lender an amount of $98,500.00. This type of mortgage helps you pay off much quicker than you had planned, but unfortunately, you will not access any discounted rates.

There’s always a mortgage for your needs or financial situation. To make sure you get the best deal, plan your budget and your monthly expenditures carefully. In addition, you may want to seek the help of a professional.