Balloon Mortgages popular in the US with homeowners who arent planning to stay in their new home for life, these mortgages are usually repayable in 5 7 years. They offer the advantage of lower interest rates but the disadvantage that if you are still in the home after the 5 or 7 year period you have to secure a new loan to pay off the balloon mortgage!

Jumbo Mortgages or 'Non-Conforming' Mortgages the UK doesnt have an equivalent of this US loan type. Basically in the US there is a legislated purchase limit set each year by the Federal National Mortgage Association (nicknamed Fannie Mae) and the Federal Home Loan Mortgage Corporation (nicknamed Freddie Mac), a jumbo loan allows the borrower to borrow over and above this amount but for the privilege they will incur higher interest rates.

Step Two having identified which type of mortgage probably suits you best you need to consider repayment methods and you basically have two to choose from: -

Interest Only your monthly repayments to your lender cover only the interest on the loan meaning that nothing you pay back goes towards repaying the borrowed amount; it is up to you to establish some form of savings vehicle over the lifetime of the loan period into which you pay sufficient sums to ensure you have enough capital at the end of the loan period to pay back the amount borrowed.

Capital & Interest your monthly repayments are divided into an interest payment and a capital repayment. In the early years of the loan period most of the monthly payment is swallowed up in interest but over time the balance swaps and you start to pay off more of the capital sum borrowed.

Step Three Now you know which mortgage type and which repayment method you favour its time to find the right lender! There are so many lenders offering such a variety of loans that at first it can seem a daunting prospect trying to determine which lender most suits you! However, depending on the strength of your credit record, your current employment position, how much you would like to borrow and how much of a down payment you are in a position to make, some lenders will rule themselves out and some will seem more attractive to you.

It is possible to approach an independent mortgage broker or independent financial adviser to assist you with your search. Such an individual will examine the product market place and apply his expertise to locating the best lender to suit his clients requirements.

Most of these brokers are paid a commission by the lender when you take out your mortgage; however some also charge you a fee. Make sure you find out from the broker whether you will be charged as this is potentially an additional fee you could well do without!

Finally there are a lot of informative sites and tools like mortgage calculators available on the internet to provide you with, for example, an idea of how much you can borrow and the most efficient borrowing and repayment method to suit you and also to give you an insight into the lenders themselves.

By making use of all the tools and resources available to you and by doing your home work you will be informed and this will strengthen your loan buying position.

Rhiannon Williamson is the publisher of http://www.shelteroffshore.com/ - the online resource for offshore and international real estate investors.

If youre thinking of buying real estate abroad for investment or retirement, or youre searching for a dream holiday home in the sun visit http://www.shelteroffshore.com/index.php/property/ for a comprehensive range of free guides and articles to help you on your way, or to contact an international mortgage broker.