What according to you are the components of a cheap homeowner loan? Low interest rate and lower fees will be the choice of a larger group of people. These are the visible components of the homeowner loan and thus easily come into the notice of people. However, there are many other factors that too need to be looked into for lowering the cost of the homeowner loan. The difficulty though is that these factors are invisible and cannot be demanded so easily from loan providers as a low interest rate.

This brings us to the myth that some people have of homeowner loans. Quite a few people feel that a cheap homeowner loan is their right because they are prepared to give the homeowner a right on their home. But all they can do is search for a low rate homeowner loan. The other factors that we are going to talk of are still unattended and can result in an increase in cost of the homeowner loan.

One of these factors is the method of charging interest on homeowner loan. Unless otherwise mentioned, interest will be charged according to the variable rate method. This is also known as the adjustable rate method. In this method, the rate of interest keeps on fluctuating according to the bank base rate decided by the Bank of England, UK