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When you first decide to purchase your own home, you’ll need to decide which type of home mortgage is right for you. There are many different kinds of home mortgages and it can be a little confusing if you are completely new to how these work. Most of us can’t afford to buy a home outright, which means applying for a home mortgage in order to buy the house of our dreams.

 There are two main types home mortgages – fixed and variable rate. A fixed rate home mortgage means that you will be paying the same interest rate on your loan no matter what happens to the market for the years to come. This is probably the most popular option since it is not subject to the whims of the interest rates market. The variable rate home mortgage does not lock in an interest rate. You’ll be paying whatever the rates are for that particular month. These are usually only popular when interest rates go down and can be quite expensive if there is a large change in the markets. Your bank will be able to advise you on which home mortgage is right for you. It is a good idea to check with several different banks to make sure that you are getting the absolute best deal when shopping for a new home mortgage.

Related reading: home, mortgage