|
|
A Look at Common Types of Loans
People sometimes wonder about common types of loans, especially with all of the different types of loans available. There are many common types of loans that may fall into the same categories, as well as some common types of loans that are only...
Benefits of Unsecured business loans
Secured business loans, used as a source of business capital,
are disadvantageous not only because they can lead to
repossession of asset if repayments are not made. Secured
business loans come with many restrictions imposed by the...
Demystify the allegorical misinterpretation of bad credit personal loans.
Every time you go for a loan, the bad credit trademark hits you where it should – your odds at finding a loan. For bad credit personal loan, it is necessary to discover your standing as a loan claimant. Loan borrowing is promoted as a much...
Holiday loans: celebrating holidays in your own special
A holiday in many countries is a day set aside for celebrations
and is considered a culture wide observation or activity. Since
holiday is such a huge occasion, many people appreciate in their
own personal way. Since holidays generally include...
Home Equity Loans - Section 32 Mortgages
If you're refinancing your mortgage or applying for a home
equity installment loan, you should know about the "Home
Ownership and Equity Protection Act of 1994." The law addresses
certain deceptive and unfair practices in home equity lending.
It...
|
|
|
|
|
|
|
|
Adjustable Rate Mortgage Loans - Understanding The Basics
Adjustable rate mortgages (ARM), developed when mortgage
interest rates were high, can help you finance the purchase of a
home with low interest rates. An ideal choice for those who
expect their income to rise or move in a couple of years, an ARM
also increases your risk for higher payments. Fortunately,
lenders also offer safeguards to limit some of your risk to
excessively high interest rates.
ARM Features
An ARM starts with a low interest rate, up to 3% lower than a
fixed rate mortgage. With lower rates, you usually qualify to
borrow more than with a fixed rate home loan.
ARMs usually start with a fixed rate period and end with
fluctuating yearly interest rates, increasing or decreasing your
monthly payment. So a 3/1 ARM means 3 years of fixed rates with
interest rates changing every year after that. Interest rates
are based on an index, usually the rate on the T-bill or LIBOR,
and the margin the lender adds to the index.
ARM Safeguards
In order to protect borrowers from sky-rocketing monthly
payments, mortgage lenders put in place safeguards. For example,
a point cap limits how much interest rates can rise monthly and
over the life of the loan. There are also ceiling limits on how
low rates
can go, protecting the lender.
Another safeguard is a dollar cap on monthly payments. However,
if interest rates rise higher than the dollar cap allows, you
may end up with a longer loan. Many financing companies also
allow you to convert your ARM to a fixed rate mortgage after a
predetermined period.
ARM Considerations
While an ARM has many benefits, there are other considerations
to look at. For instance, interest rates can rise 4% or more
over the course of your home loan. If you plan to stay in your
home for several years, a fixed rate may offer lower interest
costs in the long term. ARMs are also unpredictable, which makes
planning long term financing goals difficult.
Before you apply for an ARM, make sure you are comfortable with
the level of risk involve. However, if you expect your income to
rise in the future or to move, then you may be saving yourself a
lot of money in interest payments with an ARM.
About the author:
See my recommended Home
Mortgage Lenders online. Carrie Reeder is the owner of ABC
Loan Guide, which offers help finding the best home mortgage loans.
|
|
|
|
|
Cheap Loans | car, personal & secured homeowner loans ... |
Compare over 400 UK personal (unsecured) and secured homeowner loans, including car loans, to find the cheapest deals... |
www.moneysupermarket.com |
  |
E-LOAN: Mortgage Refinance, Home Equity, Auto Loans, Savings ... |
E-LOAN offers home mortgage, refinance, home equity loans, lines of credit, auto and motorcycle loans, savings accounts and CDs with great rates online. |
www.eloan.com |
  |
Loan Center - Yahoo! Finance - News, Education, Daily Rates and ... |
Loan Center - The Yahoo! Finance Loan Center provides useful tips, calculators, and rate data to help you choose an auto loan, mortgage, or personal loan ... |
loans.yahoo.com |
  |
FREE LOANS QUOTE - the customers champion. Finding you the right ... |
COMPARE! Let us get you a loans quote with minimal fuss. We're the UK specialists. |
www.moneyweb.co.uk |
  |
Personal Any Purpose Loans : Loans.co.uk : Personal Loans UK |
Offers consumer loans for any purpose in the United Kingdom. |
www.loans.co.uk |
  |
FinAid | Student Loans |
An education loan is a form of financial aid that must be repaid, with interest. ... The interest rate on the Stafford Loan for new loans first disbursed ... |
www.finaid.org |
  |
GovLoans.gov - Find the Right Loan for You |
GovLoans is a partnership of many Federal agencies and organizations with a shared vision - to provide improved, personalized access to government loan ... |
www.govloans.gov |
  |
Loan - Wikipedia, the free encyclopedia |
Bank loans and credit are one way to increase the money supply. ... Abuse in the granting of loans is known as predatory lending. ... |
en.wikipedia.org |
  |
Mortgages, Refinance, Home Loans, Home Equity Loans at Quicken Loans |
Online lender offers simplified residential loans and competitive mortgage rates. Headquarters in Livonia, MI. |
www.quickenloans.com |
  |
Mortgage Loans - Compare Mortgage Rates - MSN Money |
Get a mortgage loan that’s right for you. Compare mortgage loan rates of top lenders. |
moneycentral.msn.com |
  |
The Student Loans Company Ltd. |
Provides details of the Student Loans system which is part of the Government's financial support package for students. |
www.slc.co.uk |
  |
Sallie Mae - Private Student Loans, Stafford, PLUS, Student Loan ... |
Apply online for federal and private student loans, consolidate student loans; financial aid and scholarship information for college, graduate school and ... |
www.salliemae.com |
  |
Loan Guaranty Service, Home Page (U.S. Department of Veterans Affairs) |
This page provides content and information related to the Loan Guaranty Home Loan Program. |
www.homeloans.va.gov |
  |
Fool.co.uk - Compare Loans - Personal Loans and Unsecured Loans |
Compare over 200 UK loans including personal loans, secured loans, and unsecured loans. Search all loans and apply online. |
www.fool.co.uk |
  |
LendingTree Home Loans | Refinance | Home Equity | Mortgage Refinance |
Service network of lenders that enables consumers to compare rates, apply for and get approval for competitive auto loans online. |
www.lendingtree.com |
  |
Direct Loan Home Page |
The US Department of Education's lending arm for students in participating schools and student loan consolidation. |
www.ed.gov |
  |
Personal, home equity loans for union members at Union Plus |
Union Privilege offers Union Plus benefits -- including credit card, mortgage, loans, insurance, scholarships, health care savings and other discounts -- to ... |
www.unionplus.org |
  |
Countrywide Financial - Home Loans - Equity Loan Mortgages ... |
Countrywide Home Loans is the nations largest independent mortgage lender offering home equity, HELOC, refinance, mortgages, debt consolidation and other ... |
my.countrywide.com |
  |
Secured Loans UK - Secured Personal Loans - accepted.co.uk |
We search over 200 secured loan plans to find the best deal from our lenders - accepted.co.uk. |
www.accepted.co.uk |
  |
UK Loans : Personal Loans, Secured Loans, Cheap Loan Quotes |
The UK Personal Loan Store offers comparisons of the UK loans, personal and secured loans. Also offers tips, articles and latest loan news section. |
www.ukpersonalloanstore.co.uk |
  |
|