I was a little unsure when we started with our house a few years back. We were handling a business which requires big capital plus there are other ventures my husband were looking at the time. We have to be careful with our financial management. But we did not want to postpone purchasing the house we wanted located at his hometown. For one thing, the place was being developed which only means one thing, the value of the land in the area will go high year after year. It is a wise investment.
After some lengthy talk, we said why not look at the best possible solution - Mortgages. We have been managing our finances quite good and the credit standing is clean. Lenders will be good to us.
Choosing a valuable interest rate is a critical step. My husband is basically a finance person by heart hence he knows how to track rates. He has broker friends too who helped him with the different option on interest rates. There are fixed rates and there are adjustable rates.
Adjustable rate works depending on the state of the economy as a general rule. For someone who intends to have a buy and sell scheme for housing, this is a better option as the initial rate is low. Fixed rate, however, as the name implies gives the same interest rate throughout the loan period. It is wise to avail of this if the interest rate is low where you can afford to pay it for you long term loan.