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289
(2 votes, average 5.00 out of 5)
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Personal Finance -
Mortgage
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Written by Omie Ismail
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Wednesday, 24 March 2010 03:10 |
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Adjustable Rate Mortgages (ARMs) are the instrument that created massive problems for so  many Americans. But is there ever a reason to get an ARM versus a traditional fixed rate loan? Are ARMs inherently risky or is it just certain types that had unrealistic teaser rates and negative amortization? It turns out that ARMs in of themselves haven't been a bad instrument in the last decade, it's those that had built in interest rate jumps that have caused so many issues.
And yet, most Americans would do well to stick with the traditional 15 or 30 year mortgage. They provide certainty that can be budgeted for and reduce the risk of any payment spikes in the future. However, the spread between a 30 year mortgage and a 5/1 ARM is about 100 basis points (1 percent). If you are in one of these 5 situations, it may be worth nabbing an ARM if the differential is great enough.
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Read more: Does an Adjustable Rate Mortgage (ARM) Ever Make Sense?
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248
(1 vote, average 5.00 out of 5)
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Personal Finance -
Mortgage
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Written by Omie Ismail
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Monday, 08 February 2010 05:10 |
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If you rent, you have a golden opportunity that won't last much longer. Unlike your mortgage encumbered friends, you have the opportunity to cut your monthly expenses by negotiating your rent down. Seem like a long shot with your landlord? Think again. In the Great Recession, everything is negotiable including your monthly rent. Here's 5 steps that will give you the best shot of lower rent.
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Read more: 5 Steps to Lowering Your Rent
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203
(8 votes, average 4.63 out of 5)
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Personal Finance -
Mortgage
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Written by Ahmed Amr
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Friday, 18 December 2009 10:21 |
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With all the talk of economic recovery and a bottom to the housing bust, there appears to be a new trend out there that should give pause to anyone buying into rosy scenarios of an economic recovery around the corner. People are walking away from their houses even when they can afford the mortgage payments. And they're doing it because it's in their best financial interests. The financial industry coined a term for this new phenomenon - "Strategic Defaults on Mortgages." It's happened before, notably in California in the 90s, but this time, it is far more widespread.
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Read more: Underwater on Your House? Might be Time to Stop Paying Your Mortgage
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47
(6 votes, average 4.17 out of 5)
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Personal Finance -
Mortgage
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Written by Omie Ismail
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Sunday, 13 September 2009 08:02 |
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Everyone wishes they had an ultra low rate mortgage because of the low monthly payments. A 30 year mortage under 5% would classify as low interest today. The monthly payment for a $400,000, 30 year loan at 4.5% is $2,027. Compare that to a higher cost loan of 9 percent that might be given to someone with lower creditworthiness. The same loan at 9 pecent is $3,218 a month, almost $1,200 more. But there is something that very few people understand that may be far more important in today's flat or declining markets than the obvious lower monthly payment.
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Read more: Low Rate Mortgages: The Benefit You Never Heard Of
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41
(2 votes, average 5.00 out of 5)
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Personal Finance -
Mortgage
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Written by Omie Ismail
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Friday, 11 September 2009 15:57 |
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Getting a cheap mortgage has gotten is much easier with the Internet. You have the ability to research rates, submit applications, and get a quote within minutes or hours. However, getting a great rate means you have to be ready. Here are some basics that you should know:
1) Your FICO score is the single most important factor in determining the interest rate you will be charged. If you want the rates that everyone is touting keep your FICO above 720. Don't know your FICO you can check Experian or one of the other rating agencies to get your latest score. If you don't know your score, don't apply for credit.
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Read more: How to Get a Cheap Mortgage - The Basics
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