Balloon mortgage loans have three to ten year tenures, during which you pay same amount each month. At end of loan tenure, you pay off balance of mortgage loan as one lump sum. Balloon mortgage loans are available at fixed or adjustable rates, but are considered highly risky because you end up paying off interest on mortgage loan and not principal, and you stand to lose both property and money paid to date to owner if you cannot pay off loan balance at end of tenure or get refinance. If you want to save money by paying a lower rate of interest, are buying properties when interest rates are high, are sure of purchasing property you want, are confident of refinance options when balloon is due, or have no other choice, select a balloon mortgage loan.

This information should help you select right mortgage loan. Check interest rates carefully before buying and you should be all right!

6) Once you have selected house, there are some administrative and legal procedures to undertake that involves transferring ownership of land or buildings from one owner to another. This step also includes finalising your mortgage and contract details.

7) Another point you need to be alert about is if you are selling a property to buy new house, then sell home first before you get down to selecting and buying house. Otherwise, temporary financial crisis could leave you frustrated.

8) Now, that you have borrowed a sum to buy house, you need to repay them. You should have a proper repayment plan in place to handle your finance properly. This takes care of tension and crisis you may face due to limited finance and at same time maintain your credibility. You can think of debt consolidation or investing in any other bonds and investments that can help you pay amounts at regular intervals.