Self employment is a huge rage these days. Statistics show that more and more people are choosing to be self-employed in recent times. After all, who wouldn’t like to work on his or her own terms, get better pay by him or herself and have flexible work hours? Most people would rather be answerable to themselves than their bosses. Many people are beginning to consider these factors and are considering self-employment as a feasible option.

In spite of the positive factors outlined above, self-employment has its own share of disadvantages as well. To start off alone, you must be prepared to live with the insecurity of not having a fixed income. You could go without pay for an entire month and then go ahead and earn a lot the next month. There is none of the fixed monthly pay security that comes with regular jobs.

This has its own pitfalls. Suppose you are self employed and want to buy a house. Keeping in mind the fact that you do not have a fixed source of income, which lender will give you a mortgage? After all, the people who do business with you also need to be assured that you will have the money to pay your monthly installments. Look at it from the lender’s point of view – why would he risk his money to give someone who probably can’t pay every month as opposed to someone who is sure to pay every month (that is, a person with a fixed income)?

Is there a solution to this? Yes, it comes in the form of something known as a “flexible mortgage”. These are specifically for self employed people, but they do have awfully high interest rates. The upshot if this is that it doesn’t require you to pay a fixed amount per month and you can pay as little or as much as you want depending on how much you can afford that particular month. You can also borrow from the paid-up amount – it’s not called flexible for no reason! This will lead to a long duration mortgage period, but it certainly makes things simpler for a self-employed person. That way, if you are self-employed, you don’t need to worry about buying a house.

So if you are pondering about being self employed and still want to be able to buy your own house, consider getting a flexible mortgage. If you have braved risking the insecurity of not having a fixed income then you can certainly brave the higher rates of interest and longer loan duration of a flexible mortgage.

Are you shopping for a home mortgage loan and worried about finding the right one?
Today’s buyers market gives home mortgage shoppers many options. Currently there are many homes on the market; in fact many would say that there are too many on the market. Unfortunately one of the reasons there are so many home on the market today is because people did not choose the right mortgage.

Reasons why People Choose the Wrong type of Home Mortgage
There are a couple of reasons why a home owner may choose the wrong type of mortgage. The first may be because they didn’t do their homework and got suckered into the wrong type of home mortgage. The second is that they may have wanted the lowest monthly payment and thought that the value of their home would continue to rise. Many don’t shop around for a good mortgage lender, and some don’t think about the loan and how it will affect their lives. Most people spend too much time shopping for the right home and not enough time looking for the right mortgage option.

Mortgages You should Stay Away From
There is a type of home mortgage that you should steer clear of, and that is the pick a payment ARM, or the negative amortization loans (both loans are practically the same).
• Pick a payment loans – this type of loan offers the borrower different monthly payment options, and those are; full payment of principle and interest, or payment of interest only with the principle being differed.
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The problem with this type of loan lies in that the borrower generally ends up paying only the interest, because he has opted to pay the lowest monthly payment, for financial reasons or just because it is easier. This ends up making the borrower owe more on the house than what the house is worth. Worst yet! What happens when the loan interest goes up? This can happen if you choose an ARM mortgage loan. There are buyers that are now paying 8.5% interest rates when they could have chosen a 30 year fixed mortgage at 5%.

In conclusion it is best to stay away from the mortgage that will give you the least expensive monthly payment. Look for a fixed interest rate mortgage, that way you know that your interest will not fluctuate. The best kind of mortgage to get is a 15 to 30 year fixed interest rate mortgage.