It is a guest post by Chrismack. He is a mortgage specialist, currently he is working on home mortgage loan, mortgage loan calculator and mortgage rate calculator.

There are basic things that borrowers need to know about on different types of mortgage loans. We are looking at three types here:

1. Purchase Home Mortgage

2. Refinance Mortgage

3. Home Equity Mortgage

People have different reasons why they apply for loans and there are also various repayment schemes which the borrowers can consider for their own advantage.

PURCHASE HOME MORTGAGE.

This is ideal for people who want to own their home as against monthly rent payment. This loan types are few but each indicate the amount the borrower pays out every month whether it is fixed or adjustable rating. The borrower may also opt out for other forms of payment that may be convenient thereby preferable to him.

REFINANCE MORTGAGE

People go for this when they begin to find it very hard with the rate of repayment on an existing loan. This one reduces the former amount and gives the borrower the opportunity to pay over a longer period. It may be more convenient because the monthly repayment is reduced thereby making room for more take home pay at the end of it all.

HOME EQUITY MORTGAGE

When you acquire a big amount of money for a car, a college payment or general refurbishment of your home, you go for home equity loans. It may not necessarily mean that you are using it for home payment.

You can source home equity loans from banking institutions, private financial lenders or the internet and it takes the present value of your house as the amount you can get; also the banks or lenders determine the type or scheme of repayment for home equity mortgage loans.