How to select a mortgage plan:

While choosing or selecting a mortgage requires some careful planning and clear thought process. If one has to list down certain points that one should keep in mind while going for a mortgage, it can be listed as follows:

• One should take or borrow what one can afford to pay back – use a mortgage calculator to help you plan your mortgage better instead of just making certain assumptions and ending up in a financially distressed situation. Don’t get tempted and overstate your income to get a bigger mortgage or loan. You may end up with a loan you can’t afford to pay back at all. You’ll also be committing a financial crime and could get your name registered for a criminal record.
• You should realize and understand the difference between ‘repayment’ and ‘interest-only’ options and how do they work, and what you must do to ensure you pay off your mortgage at the end of your mortgage term. Please have a look at the following link to know the difference between ‘repayment’ and ‘interest-only’ options and how do they work
• You should realize and understand that the interest-rate deals on the mortgage or loan offer that you select, and the advantages and disadvantages of the loan offer. Make sure you know when a special deal or offer will come to an end, what changes that may have on your repayment money and think how you will make your repayments when they do increase
• You should get the legal documents of terms and condition about your mortgage or loan from your adviser or lender – and read them thoroughly by giving clear consideration. These contain important information that are legally required for the mortgage firm or loan firm to give you about their loan or mortgage service, as well as the costs and features of the loan or mortgage that you take from them.