Different Types of Loans Available for Property Purchase
When a property owner applies for a fixed or floating bank loan, there are a few things that he/she should be aware of. While the two terms may sound similar, the process involves some very important distinctions. Depending on where you live, these differences can mean the difference between owning your property and renting it. Fixed rate loans are not interest rates that are set at any given time. Instead, they are interest rates that will remain for the full term of the loan.
This term “fixed rate loan” is used to describe any type of loan that features an interest rate that will remain unchanged for the entire duration of the loan. Because this type of loan is interest only, the borrower will pay interest each month throughout the term. The amount of interest paid will be determined by using a set formula.
The first portion of the formula …