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Casual Articles - Mortgage Loan Basics: Interest Only Loans, Pay Option ARM
Internet and today’s rapidly changing scenario have brought together an easy, effective yet strategically operated world of ecommerce. Today, if you want to do excel in business, you must have your online presence and here an ecommerce website becomes your mirror to cyber world. With your own web page, your products can have access to thousands of potential customers across the world. To have a powerful, attractive and effective ecommerce website you need four essential components, which carry utmost importance before starting with a website development. Let’s get into an introduction of these vital components and see how vigilant you need to be while choosing them.Web Site Design for ecommerce purposeour site will have just few seconds to let your customers retain or hit the back or cross button. Here I simply mean to say; your site should have not only an attractive but easy user interface. It should be a practical, handy and welcoming website. Just have a look at the following points that can help you.Attractive LayoutClear and Comprehensible PresentationEasy Navigation SystemWorking HyperlinksOver all, your website should be easy to explore and revealing enough to keep your visitors stick to it retaining their interest.Professional and Reliable Ecommerce Web Hosting For the convenience of visitors and yourself, you must have a reliable and professional
4) With an arm you can have either a fixed rate or you can choose an Interest Only structure loan.
1/1 ARM Mortgage Rates
1 year ARM (Adjustable Rate Mortgage) is fixed for 1 year and in 2nd year it becomes an adjustable.
3/1 ARM Mortgage Rates
3 year ARM (Adjustable Rate Mortgage) is fixed for 3 years and in 4th year it becomes an adjustable.
5/1 ARM Mortgage Rates
5 year ARM (Adjustable Rate Mortgage) is fixed for 5 years and in 6th year it becomes an adjustable.
7/1 ARM Mortgage Rates
7 year ARM (Adjustable Rate Mortgage) is fixed for 7 years and in 8th year it becomes an adj
“If you fail to prepare, you are preparing to fail”Everyone thinking of starting a business needs to be prepared to move beyond conventional approaches. One of the most crucial factors in your business success is your ATTITUDE. Developing a positive attitude is your key to be able to reach your goals.Your knowledge, your skills, your service or product quality, will not help you enough if you don’t have a positive attitude. Many people failed in their business and the major reason of their failures is due to inadequate attitude. This brings me to an old statement "Your Attitude determines your Altitude," pretty much says it all!Before jumping into online battle, there are several things you will want to consider. What does starting a home Business involve? What should you expect? And, are you suited to this lifestyle? As with any employment decision, the proper time and research should be spent to make sure you're on the right track.To make sure you are in the right way, you should own certain markers’ qualities that will help you on your path to success. Some of these qualities may be a part of your personality, but it is always worth making the effort to learn or improve upon skills that you need to use.The main factor that affects everything in your life is your attitude.What are attitudes?Attitudes are internal characters of the heart and thoughts. They are the hidden intentions which will eve
To understand loans and mortgages we need to understand loan limits first. If your loan amount exceeds the amount below, you will qualify for a Jumbo Loan, which carries higher interest rate.
One-Family (single family homes) $417,000
Two-Family(duplex) $533,850
Three-Family (triplex) $645,300
Four-Family(fourplex) $801,950
FIXED Loans:
30 Year Fixed Mortgage Rates
This loan program is fixed for 30 years. Your interest rate will not change for 30 years. This is ideal for people who plan to stay at their present property for a long period of time.
20 Year Fixed Mortgage Rates
Fixed for 20 years. Your payment will be higher than 30 year fixed loan becuase your loan term is only for 20 years. Interest rate will not change for 20 years.
15 Year Fixed Mortgage Rates
15 year fixed loan has a loan term of 15 years and will not change during this period. Your monthly payment on this loan program will be much higher than 20 years fixed or 30 years fixed. Use this loan program if you plan to sell your home in 5-8 years. Interest rate will not change for 15 years.
ARM (Adjustable Rate Mortgage)
ARM Loans are fixed for a certain period of time, where after that period ARM loan becomes an adjustable loan. How do they work?
Each ARM Loan Program has these options:
1) Index: Most comon index-LIBOR
2) Margin: Is given to you by your lender, and it is the difference between the index rate and the interest charged to the borrower
For example 5/1 ARM. This loan is fixed for 5 years after which in 6th year it becomes an adjustable loan. Your loan officer will tell you what your index is and what your margin is. Usually 5/1 arm is tied to 1-year treasury index and margin is around 2.00%-3.00%
Your index + margin = Fully Index rate . Your new note rate (interest rate) after 5th year.
What about the 6th year? What would your payment be?
Let's say that your loan officer told you that your margin is 2.5% with 1 year treasury index. You will have to look up 1 year treasury index for a specific month.
1 year treasury as of Oct.2005 is 4.18, and you know that your margin is 2.5%. Therefore you new interest rate is 1 year treasury 4.18% (index) + 2.5% (margin) = 6.68% for the begining of 6th year.
Index rate are move on monthly basis, therefore your payment may flunctuate each month. In most cases banks wills end you a statement advising you that your rate will change.
3) To protect consumers from high index rates, lenders implemented a CAPS.
An example of this is a 2/6 cap, which allows the interest rate on your ARM loan to go up or down by no more than two percent every adjustment period, and has a total limit of six percent for cumulative changes. Therefore a 2/6 cap on a 5% ARM will allow a maximum rate (6 + 5%) of no more than 11%.
In some cases you will see 2/2/6, which means 2% adjustment with 2 year prepayment penalty and total of six percent of cumulative changes.
4) With an arm you can have either a fixed rate or you can choose an Interest Only structure loan.
1/1 ARM Mortgage Rates
1 year ARM (Adjustable Rate Mortgage) is fixed for 1 year and in 2nd year it becomes an adjustable.
3/1 ARM Mortgage Rates
3 year ARM (Adjustable Rate Mortgage) is fixed for 3 years and in 4th year it becomes an adjustable.
5/1 ARM Mortgage Rates
5 year ARM (Adjustable Rate Mortgage) is fixed for 5 years and in 6th year it becomes an adjustable.
7/1 ARM Mortgage Rates
7 year ARM (Adjustable Rate Mortgage) is fixed for 7 years and in 8th year it becomes an adju
Maybe you are one of the lucky ones, but making a speech or giving a presentation still gives me the jitters, even though I have done many over the years. My heart will start to thump away like mad and my voice often goes a little shaky when I start out. Nevertheless, like most things in life, this nervousness can be overcome and most of us can put on a decent performance, providing we prepare properly and follow a few basic steps.For example, I always learn my opening paragraph by heart but still write this out in full. I then start off by reading this from my cards or papers. This allows my voice time to settle down and the familiarity of the words helps to ease my nerves. Once the opening paragraph is out of the way I move on to just using notes for the rest of my talk. By then I'm usually fairly in control. A speech doesn't sound right if you simply read continuously, word for word, from what you have written down.I'm probably getting a bit ahead of myself, so I'll start at the beginning of preparing for a presentation of some kind. Traditionally they are expected to have an introduction, a middle and an ending. This may sound obvious but watch a lot of inexperienced speakers and you will see how they do not always follow this format. Everything can then turn into a jumble, with no real flow or continuity and often you can't be quite sure when they have actually finished, other than everything goes quiet!Let's lo
15 Year Fixed Mortgage Rates
15 year fixed loan has a loan term of 15 years and will not change during this period. Your monthly payment on this loan program will be much higher than 20 years fixed or 30 years fixed. Use this loan program if you plan to sell your home in 5-8 years. Interest rate will not change for 15 years.
ARM (Adjustable Rate Mortgage)
ARM Loans are fixed for a certain period of time, where after that period ARM loan becomes an adjustable loan. How do they work?
Each ARM Loan Program has these options:
1) Index: Most comon index-LIBOR
2) Margin: Is given to you by your lender, and it is the difference between the index rate and the interest charged to the borrower
For example 5/1 ARM. This loan is fixed for 5 years after which in 6th year it becomes an adjustable loan. Your loan officer will tell you what your index is and what your margin is. Usually 5/1 arm is tied to 1-year treasury index and margin is around 2.00%-3.00%
Your index + margin = Fully Index rate . Your new note rate (interest rate) after 5th year.
What about the 6th year? What would your payment be?
Let's say that your loan officer told you that your margin is 2.5% with 1 year treasury index. You will have to look up 1 year treasury index for a specific month.
1 year treasury as of Oct.2005 is 4.18, and you know that your margin is 2.5%. Therefore you new interest rate is 1 year treasury 4.18% (index) + 2.5% (margin) = 6.68% for the begining of 6th year.
Index rate are move on monthly basis, therefore your payment may flunctuate each month. In most cases banks wills end you a statement advising you that your rate will change.
3) To protect consumers from high index rates, lenders implemented a CAPS.
An example of this is a 2/6 cap, which allows the interest rate on your ARM loan to go up or down by no more than two percent every adjustment period, and has a total limit of six percent for cumulative changes. Therefore a 2/6 cap on a 5% ARM will allow a maximum rate (6 + 5%) of no more than 11%.
In some cases you will see 2/2/6, which means 2% adjustment with 2 year prepayment penalty and total of six percent of cumulative changes.
4) With an arm you can have either a fixed rate or you can choose an Interest Only structure loan.
1/1 ARM Mortgage Rates
1 year ARM (Adjustable Rate Mortgage) is fixed for 1 year and in 2nd year it becomes an adjustable.
3/1 ARM Mortgage Rates
3 year ARM (Adjustable Rate Mortgage) is fixed for 3 years and in 4th year it becomes an adjustable.
5/1 ARM Mortgage Rates
5 year ARM (Adjustable Rate Mortgage) is fixed for 5 years and in 6th year it becomes an adjustable.
7/1 ARM Mortgage Rates
7 year ARM (Adjustable Rate Mortgage) is fixed for 7 years and in 8th year it becomes an adj
Stop 100 people over 65 on the street and ask them if they will ever need to go to a nursing home and 99 will say, “No!” Folks tend to equate long term care insurance with nursing homes, but there are other aspects of long term care. Home care, assisted living, adult day care and hospice care are all forms of long term care which cost money where the person never sees the inside of a nursing home.Planning for the many types of long term care just makes good financial planning sense.However, long term care can be expensive, especially if a person waits too long to buy it. Age and health problems could make premiums prohibitive or even render the coverage unattainable.What if there was a way to make sure you had long term care coverage if you ever needed it, but never had to take premiums to pay for it out of your income? Actually, there are quite a few. Let’s look at three of them…1. Sell a life insurance policy.Unbeknownst to many people, there is an “after market” for life insurance policies that have served their purpose and are no longer needed. There are companies that will buy policies on behalf of pension and institutional funds which hold them as part of their investment portfolio. The best part is that they will buy them for more than the cash value.Other insurance policies that may be a candidate are those where the premium takes a huge hike because of the drop in interest rates, policies with max
For example 5/1 ARM. This loan is fixed for 5 years after which in 6th year it becomes an adjustable loan. Your loan officer will tell you what your index is and what your margin is. Usually 5/1 arm is tied to 1-year treasury index and margin is around 2.00%-3.00%
Your index + margin = Fully Index rate . Your new note rate (interest rate) after 5th year.
What about the 6th year? What would your payment be?
Let's say that your loan officer told you that your margin is 2.5% with 1 year treasury index. You will have to look up 1 year treasury index for a specific month.
1 year treasury as of Oct.2005 is 4.18, and you know that your margin is 2.5%. Therefore you new interest rate is 1 year treasury 4.18% (index) + 2.5% (margin) = 6.68% for the begining of 6th year.
Index rate are move on monthly basis, therefore your payment may flunctuate each month. In most cases banks wills end you a statement advising you that your rate will change.
3) To protect consumers from high index rates, lenders implemented a CAPS.
An example of this is a 2/6 cap, which allows the interest rate on your ARM loan to go up or down by no more than two percent every adjustment period, and has a total limit of six percent for cumulative changes. Therefore a 2/6 cap on a 5% ARM will allow a maximum rate (6 + 5%) of no more than 11%.
In some cases you will see 2/2/6, which means 2% adjustment with 2 year prepayment penalty and total of six percent of cumulative changes.
4) With an arm you can have either a fixed rate or you can choose an Interest Only structure loan.
1/1 ARM Mortgage Rates
1 year ARM (Adjustable Rate Mortgage) is fixed for 1 year and in 2nd year it becomes an adjustable.
3/1 ARM Mortgage Rates
3 year ARM (Adjustable Rate Mortgage) is fixed for 3 years and in 4th year it becomes an adjustable.
5/1 ARM Mortgage Rates
5 year ARM (Adjustable Rate Mortgage) is fixed for 5 years and in 6th year it becomes an adjustable.
7/1 ARM Mortgage Rates
7 year ARM (Adjustable Rate Mortgage) is fixed for 7 years and in 8th year it becomes an adj
If you need credit repair help, credit repair counseling or credit repair advice, there are many companies, software programs, credit repair kits, books and assorted other items available for purchase. There are many things that you can do yourself for credit repair. Most of which are free. Whether you decide to do-it-yourself or get some help, credit repair is worthwhile.People with high credit scores get the best interest rates. They pay lower insurance premiums. They are not required to make security deposits on utilities and cell phone contracts. There are many reasons to look for credit repair help. There is no reason to wait. No matter what current credit problems you may have, there is help. Credit repair or improvement of credit scores is possible for anyone. Some people may not need help. They may already have a credit score of 760 or higher. These people are already getting the best interest rates available. But even someone with a credit score of 759, just one point less, will pay a little more in interest.According to Fair Isaac, the company which invented the current credit scoring process, 60% of the American population has a credit score that is below 749. So, 60% of the American population could be looking for credit repair help, credit repair counseling or advice. This is the reason that there are so many credit repair companies. There is a large market for credit repair professionals. Those who are
Index rate are move on monthly basis, therefore your payment may flunctuate each month. In most cases banks wills end you a statement advising you that your rate will change.
3) To protect consumers from high index rates, lenders implemented a CAPS.
An example of this is a 2/6 cap, which allows the interest rate on your ARM loan to go up or down by no more than two percent every adjustment period, and has a total limit of six percent for cumulative changes. Therefore a 2/6 cap on a 5% ARM will allow a maximum rate (6 + 5%) of no more than 11%.
In some cases you will see 2/2/6, which means 2% adjustment with 2 year prepayment penalty and total of six percent of cumulative changes.
4) With an arm you can have either a fixed rate or you can choose an Interest Only structure loan.
1/1 ARM Mortgage Rates
1 year ARM (Adjustable Rate Mortgage) is fixed for 1 year and in 2nd year it becomes an adjustable.
3/1 ARM Mortgage Rates
3 year ARM (Adjustable Rate Mortgage) is fixed for 3 years and in 4th year it becomes an adjustable.
5/1 ARM Mortgage Rates
5 year ARM (Adjustable Rate Mortgage) is fixed for 5 years and in 6th year it becomes an adjustable.
7/1 ARM Mortgage Rates
7 year ARM (Adjustable Rate Mortgage) is fixed for 7 years and in 8th year it becomes an adj
Have you ever wondered ….* Why even the highest priced or lowest quality products sometimes outsell their competitors’?* Why and how your prospects buy the products or services they do, even if their choices seem irrational or impractical?* Why some brands have a devoted cult-like following while others have zero loyalty?A new field called NeuroMarketing – combining neuroscience, marketing and technology – has generated a buzz across every industry and every business sector. Let’s look at how the latest findings can help you convert more prospects to customers and create life-long loyalty and raving fans.NeuroMarketing: Is It The Key To Unlocking Your Customer’s Brain?In traditional marketing, we are told … “follow the proven formula of compelling headlines, benefits, satisfaction guarantee and a call to action, and your sales will skyrocket.” Yet, even top marketers can attest that successful campaigns are a “hit or miss” proposition to find those that generate big sales.Until now …Neuroscience and behavioral sciences – such as NLP (NeuroLinguistic Programming) – are all saying the same thing:“Our unconscious mind – not our conscious mind -- drives how we respond to ads, brands and products and, ultimately, drives all our buying decisions. Customers don’t really know why they buy what they buy, which is why traditional market research fall short.”Let’s take a look
4) With an arm you can have either a fixed rate or you can choose an Interest Only structure loan.
1/1 ARM Mortgage Rates
1 year ARM (Adjustable Rate Mortgage) is fixed for 1 year and in 2nd year it becomes an adjustable.
3/1 ARM Mortgage Rates
3 year ARM (Adjustable Rate Mortgage) is fixed for 3 years and in 4th year it becomes an adjustable.
5/1 ARM Mortgage Rates
5 year ARM (Adjustable Rate Mortgage) is fixed for 5 years and in 6th year it becomes an adjustable.
7/1 ARM Mortgage Rates
7 year ARM (Adjustable Rate Mortgage) is fixed for 7 years and in 8th year it becomes an adjustable.
10/1 ARM Mortgage Rates
10 year ARM (Adjustable Rate Mortgage) is fixed for 10 years and in 11th year it becomes an adjustable.
Interest Only Loans
For example, if a 30-year fixed-rate loan of $100,000 at 8.5% is interest only, the payment is .085/12 times $100,000, or $708.34. This is an example of interest only payment.
Each loan payment consists of Interest and Principal. Here you will be paying an interest each month and your principal will be adding to your balance, thus increasing it. You may also pay both principal and interest.
If a lender offers you an Interest only Loan these loans are tied to an index just like ARM loans.
MTA Index: The MTA index generally fluctuates slightly more than the COFI, although its movements track each other very closely.
. 1 Month MTA ARM Mortgage Rates
. 3 Month MTA ARM Mortgage Rates
. 6 Month MTA ARM Mortgage Rates
. 12 Month MTA ARM Mortgage Rates
COFI Index: This index rise (and fall) more slowly than rates in general, which is good for you if rates are rising but not good for you if rates are falling.
. 1 Month COFI ARM Mortgage Rates
. 3 Month COFI ARM Mortgage Rates
LIBOR Index: LIBOR is an international index, which follows the world economic condition. It allows international investors to match their cost of lending to their cost of funds. The LIBOR compares most closely to the CMT index and is more open to quick and wide fluctuations than the COFI.
. 6 Month LIBOR ARM Mortgage Rates
. 12 Month LIBOR ARM Mortgage Rates
Pay Option ARM Loan
Pay Option ARM in a new loan program allowing customers to choose from up to 4 different payments. This loan program is part of an ARM, but with added flexibility of making one of the 4 payments.
Your intial start rate varies from 1.000% to anywhere around 4.000%. The intial start rate is held only for one month, after that interest rate changes monthly.
4 major choises are:
1) Minimum payment: Fot the first 12 months interest rate is calculated using the start rate after that interest rate is calculated annually.
Example:
Loan Amount: $200,000.00
Initial Rate: 1.25%
Index: 3.326 (MTA as of October 2005)
Margin: 2.75%
Payment Cap: 7.5%
Fully Indexed Rate: 6.076% (ndex + margin )
Minimum Payment Changes:
Year 1 $666.50 Minimum Payment
Year 2 $716.49 = $666.50 + 7.50%
Year 3 $770.22 = $716.49 + 7.50%
Year 4 $827.99 = $770.22 + 7.50%
Year 5 $890.09 = $827.99 + 7.50%
The Option ARM's 7.5% payment cap limits how much the payment can increase or decrease each year, except for every fifth year (beginning in the 10th year on certain programs), when the cap does not apply. In the event your balance exceeds your original loan amount by 125% (110% in N.Y.), the payment amount may change more frequently without regard to the
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