If you have not yet become acquainted with a mortgage, it can be hard to make heads or tails of what this type of loan actually is. The article here will help you through mortgage-jungle, so you can be ready to seize borrow world depends.

If you need to borrow money for a home, it is in most cases such that the loan will consist of up to 80% mortgage - remainder paid via bank loans or own savings. A mortgage works is that the mortgage bank issued a number of bonds sold on an exchange. In exchange for the bonds do you get as a borrower paid the money to pay the new housing. In this context, both the price and yield two important factors. Price does 'price at any given time', and so is the price that the buyers of the bond paying for it. The price depends on supply / demand, and the price is determined by the purchase or sale. The interest rate is the price attached to loans or lending money. In connection with the mortgage you have to pay interest to the bank to borrow money. This money goes to the buyer of the bonds. Most indicated interest rates as a percentage per payment period - for example per year. Read more about exchange rate and interest rates - and the connection between these sizes in the article Mortgages - the ultimate guide .

Mortgages - several different loan types

In connection with mortgages are talking about different loan types - fixed rate loans and flex loans. A fixed rate loan is a loan where the interest rate is fixed throughout the loan term. Here, your monthly repayment and loan term always be constant. There are two sub-categories of fixed-rate loans - cash loans and bond issues. A cash loan is a loan where you know in advance how much money you get paid. Against this is the rate that determines how much your total debt is. Conversely, do you know of a bond the total debt, while exchange rate determines the amount you get paid. A fixed rate loan is right for you if you want to know how your future housing looks. A fixed rate loan is usually more expensive than a flex loans.

At a flex loans know either no future monthly payments or loan term - it depends on whether you choose flex loans with variable yield and fixed maturity or flex loans with fixed and variable duration. The total price for a flex loans can fluctuate considerably. This loan type fits exclusively for you, if you have air in your finances and can deal with any price increases.

You can read more about mortgages - including, among other afdrags / deferred amortization, and restructuring of mortgage loans in the article Mortgages - the ultimate guide .