| |
Why Choose An Adjustable Rate Mortgage?
By rateempire
Adjustable rate mortgages (ARMs) are appealing to many homebuyers, but what are the risks?
An adjustable rate mortgage is one in which the rate changes based on the market interest rates. The rate will adjust on a specific schedule, say once a year, after an initial fixed period. Fixed periods range from six months to five years. Some may have even longer fixed periods.
The risk in an ARM comes from having a payment that can change significantly. When you have a fixed rate mortgage, you know that your payment will be the same now, ten years and twenty years later. The payment doesn't change because the interest rate is fixed.
When you choose an adjustable rate mortgage, you accept the risk of a rising payment in return for a lower initial interest rate. This rate is usually much lower than the market rate for a 30-year fixed rate mortgage. The more risk you accept, the lower your initial interest rate. The more adjustments the loan will go through, the more risk. The traditional thinking is that even after a loan adjustment, the rates will be lower than those offered to new borrowers for 30-year fixed mortgages. However, it does happen where this gap closes, especially in periods of rising interest rates.
The best time to get an ARM is when interest rates are on the decline. Despite the risk, an ARM can be beneficial to certain borrowers. While most advisors will tell you that a fixed-mortgage is the way to go in every situation, there are times when you should consider an adjustable rate.
1. The borrower needs extra cash for a while.
A lower initial fixed rate gives you more money in your pocket early in your loan term. For example, a one-year ARM with a 30-year term and a rate which adjusts once a year on the anniversary of the loan date comes with zero points and an initial rate of 5.625%. Let's compare that to a 30-year fixed rate mortgage with no points and a fixed rate of 7.625%.
If you take out a $240,000 mortgage, the 30-year fixed rate payment would be $1,698.70 each month. The one-year ARM would have a monthly payment of $1,381.58. That's a difference of $317 a month.
You could use that extra $317 to pay off your credit cards, make improvements to the home or save for retirement. But you want to make sure that you will maintain a lifestyle that can afford for your payment to increase. You don't want to find that you cannot afford a higher mortgage payment when the rate adjusts upwards.
2. Buy more home.
Because of the lower initial interest rate, you can qualify for a larger mortgage amount and a more expensive home. Many homebuyers secure a one-year ARM with the purpose of refinancing them later. The low rate allows a more costly home, but a low mortgage payment. But remember that refinancing comes with closing costs. Do the math to see if you are really saving any money.
3. It all depends on the future.
If you plan to move or upgrade in the next few years, an ARM is a wise decision. You can benefit from a lower rate mortgage and simply sell the home and buy another before the rate adjusts. For example, if you plan to move in three years, why not go in for a five-year adjustable mortgage. You get a lower rate that won't adjust while you own the home, as long as you sell during the initial rate period.
Make sure that the loan comes with no prepayment penalties. Make sure that you do some math. If interest rates go up drastically in those three years, when you buy a new home, you will be facing the higher interest rates. This could mean that you are unable to really upgrade to a larger or more expensive home.
Adjustable-rate mortgages are basically all about weighing the risk. You are getting a lower interest rate and payment for taking the risk of having to pay a lot more in the future. Some homeowners are experiencing this right now as foreclosures are
THRASS Synthetic Phonics Programme Set to Make Even Bigger Impact in 2009
Although we're only a few days into the New Year, the highly successful THRASS synthetic phonics programme is already set to make an even bigger impact on the world of education in 2009, starting with the high-profile launch of the new groundbreaking THRASS Phoneme Machine software with Cued Speech option on 15 January. (PRWeb Jan 6, 2009)
Read the full story at http://www.prweb.com/releases/2009/01/prweb1820014.htm ]]>
Home Study Driving Course Helps Parents and Teens Enjoy This New Rite of Passage
The Society of Family Insurance Specialists is an organization of insurance agents that specializes in insurance education and protection of families. The SFIS is offering parents of teen drivers a 16 Step Home Study Safe Teen Driver Course and a chance to win a $500 college savings bond at no cost to parents for taking a short survey. (PRWeb Jan 6, 2009)
Read the full story at http://www.prweb.com/releases/2009/01/prweb1824974.htm ]]>
Free Homework Planner Available from TeamUP! Tutors
TeamUP! Tutors, an in-home tutoring company, has released a free homework planner to help students organize assignments and manage time. This educational supplement is free and easy for students, parents or teachers to download. (PRWeb Jan 6, 2009)
Read the full story at http://www.prweb.com/releases/2009/01/prweb1827074.htm ]]>
EleMental Learning To Provide In-Home Tutoring In Fairfield County
EleMental Learning, an in-home tutoring company with established practices in New York City, Long Island, Westchester County, and the Chicago, IL metro region, announces the opening of its Fairfield County practice. Founded by a former school teacher, EleMental Learning differentiates itself from other tutoring companies by: (1) utilizing ONLY certified teachers as tutors, (2) customizing its tutoring plan for each student rather sticking to rigid methods, and (3) offering pay-as-you-go pricing rather than the packaged services often sold by other tutoring companies. (PRWeb Jan 6, 2009)
Read the full story at http://www.prweb.com/releases/2009/01/prweb1823984.htm ]]>
Emily Madill Launches Captain Joe Book Series To Teach Children About The Power of Thought
Local Mom and author launches a series of books to teach young children about the power of their thoughts in a fun and interactive way (PRWeb Jan 5, 2009)
Read the full story at http://www.prweb.com/releases/Emily/Madill/prweb1656294.htm ]]>
Academic-Services.com offering Webinars to Help College Students Succeed
Academic-Services.com, a provider of college admission coaching, consultation, counseling, advising, and tutoring services, will begin offering webinars and videoconferencing to help college and high school students succeed. (PRWeb Jan 1, 2009)
Read the full story at http://www.prweb.com/releases/2009/01/prweb1810074.htm ]]>
Children Need Home-Schooling in Home Skills
Organisehomeguide.com Launches to Help Mothers Give Children Home-Schooling in Home Skills.Far too many children are leaving home, without the basic skills needed to look after themselves. (PRWeb Dec 29, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1799154.htm ]]>
College-bound Students Stress about Application Essay
Experts share tips for reducing anxiety and making your application essay tell your unique story. (PRWeb Dec 24, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1792234.htm ]]>
uBoost Partners with the WeAreTeachers Knowledge Marketplace
WeAreTeachers members can now earn and redeem "WATTAGE" points for their engagement and activity within the community. (PRWeb Dec 24, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1785404.htm ]]>
Pandora Corp. Announces PC Pandora Free Holiday Giveaway
Pandora Corp. is leaving a gift under every parent's tree this holiday season: PC Pandora absolutely free! The economy is tough, but Internet safety for children is one area that we cannot afford to let suffer. Monitoring software will help parents keep their kids safe from Internet predators, cyberbullies and other threats online. (PRWeb Dec 22, 2008)
Read the full story at http://www.prweb.com/releases/PCPandora/HolidayGiveaway/prweb1782954.htm ]]>
New Improvements for Math-U-See in 2009
Announcing new binding, hardback for instruction manuals, perfect binding for student texts as well as complete solutions, improved design, subtitles for the DVD's and integrated honors material. (PRWeb Dec 22, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1771584.htm ]]>
Essay Contest for High School Students: Patriotism and Native Americans
Up to 10 winning students. $2,500 each in cash prizes. Reconnecting The Circle® announces its third National High School Essay Contest. Deadline is January 23, 2009. (PRWeb Dec 19, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1764554.htm ]]>
Top 10 "Teachable Moments" for Families This Holiday Season
Parent Tips for Holiday Traditions, Winter Activities to Keep Learning Alive, from Connections Academy, a Leading Virtual Public School (PRWeb Dec 17, 2008)
Read the full story at http://www.prweb.com/releases/Connections_Academy/holiday_activities/prweb1759544.htm ]]>
Pandora Corp. Releases Important Update for PC Pandora Computer Monitoring Software
PC Pandora 5.2 incorporates Facebook Messenger monitoring and more, making monitoring Internet activity of kids even easier for parents of the Net generation. (PRWeb Dec 17, 2008)
Read the full story at http://www.prweb.com/releases/PCPandora5_2/MonitoringSoftware/prweb1763184.htm ]]>
Barbara Bush Fund Awards Disaster Recovery Grants to Texas Literacy Programs
The Barbara Bush Texas Fund for Family Literacy (BBTFFL), working with the Texas Center for the Advancement of Literacy and Learning (TCALL) at Texas A&M University, awarded nine Texas adult and family literacy programs with grants to assist in recovery from recent natural disasters affecting the state, including Hurricanes Ike and Dolly and the Rio Grande flooding. (PRWeb Dec 17, 2008)
Read the full story at http://www.prweb.com/releases/literacy/grants/prweb1766224.htm ]]>
A-WIT Technologies Releases World's First Low Cost C Stamp™ Based Mechatronics Laboratory in a Box
A-WIT Technologies releases world's first low cost C Stamp™ based Mechatronics laboratory in a box. The CS220000 and CS220001 both are new Mechatronics kits from A-WIT Technologies. Choose the CS220000 for US power supplies or the CS220001 for European power supplies. These kits provide everything necessary to build a complete Mechatronics Laboratory. (PRWeb Dec 17, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1741764.htm ]]>
Groundbreaking Free Phonics Software from THRASS UK to be part of Memory 4 Teachers Project
The THRASS (Teaching Handwriting Reading And Spelling Skills) synthetic phonics programme is widely accepted as having the potential to more than double the normal rate of progress for reading and spelling in English, and THRASS UK is now delighted to be part of the exciting new Memory 4 Teachers ICT project that is being promoted by the RGS Media Group. (PRWeb Dec 16, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1753094.htm ]]>
World Book Introduces Latest Editions of Authoritative References: The World Book Encyclopedia 2009 and Discovery Encyclopedia
From global warming to rap music, athletics to politics, World Book's latest reference sources are the places to "Look it up!" and "Learn more." (PRWeb Dec 15, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1743684.htm ]]>
New Tool Receives Rave Reviews as One of Crafters' "Favorite Things!"
To date, the company is celebrating both rave reviews and record-breaking nationwide sales for its "iPod of Crafting" -- Slice Cordless Digital Design Cutter. (PRWeb Dec 15, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1745804.htm ]]>
Spanish Workshop for Children Introduces Latest Princeton Center Central NJ Spanish Immersion Program Preparing Young People for Future Academic Success
Spanish Workshop for Children, a total Spanish immersion program, has introduced its latest center in Princeton, N.J. This newest center brings Spanish Workshop for Children's total number of locales to five. The central New Jersey location, housed at Trinity Church in Princeton, joins Blue Bell, Rosemont and Yardley, Pa. as well as Cherry Hill, N.J. on the Spanish Workshop for Children roster. Under the direction of Marcela Summerville, Spanish Workshop for Children enrollees enjoy a distinctive Spanish-teaching methodology and curriculum. (PRWeb Dec 15, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1744944.htm ]]>
Preschool Owner/Teacher from Gloucester, MA Launches Educational Website for Preschoolers
Beth Costanzo, M.Ed. has launched her website www.adventuresofscubajack.com to rave reviews from educators and parents. The website contains learning activities and worksheets, craft projects, on-line games and assessment tools, all created with the goal of providing preschoolers with the skills they need to begin a successful year in kindergarten. The Adventures of Scuba Jack is an innovative new DVD series for preschoolers that combines live actors, puppets and animation to entertain, excite and educate children. (PRWeb Dec 14, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1745014.htm ]]>
Historybusters Makes History Exciting for Kids
Developed by teaching veteran Lynn Marie Sager, Historybusters is an online-community website dedicated to providing both parents and teachers with the tools they need to introduce their kids to history in a way that leaves kids wanting more. (PRWeb Dec 14, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1746314.htm ]]>
Collectible Edition of Award Winning Children's Book "God's Kiss" Released By Author And Radio Personality Donna Seebo
"God's Kiss" Is Now Available On Amazon.com (PRWeb Dec 13, 2008)
Read the full story at http://www.prweb.com/releases/gods/kiss/prweb1745954.htm ]]>
Trophy Bucks Go To School Courtesy of the Cervid Livestock Foundation and Minnesota Deer Hunters Association
More than 12,000 students from 25 schools got to see trophy bucks up close and personal when Steve Porter brought his traveling deer display to them on a state-wide tour of Minnesota. Mr. Porter owns and operates a deer farm in northern Minnesota, where he is also chief deputy of the Kittson County Sheriff's Office. Steve took most of his vacation days to educate kids about deer behavior, antler development and the family bonds formed when families hunt and farm together. His goal is to get kids motivated enough to turn off the computer, put down their cell phones and venture outdoors. The Cervid Livestock Foundation (CLF), North American Deer Farmers Association (NADeFA), and the Minnesota Deer Hunters Association (MDHA) provided funding for this project. (PRWeb Dec 13, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1745184.htm ]]>
Print Version of the World Book Encyclopédie Découverte to Complement Authoritative French-language Online Version
Novice and native French-speaking students now can access authoritative reference tools in print or online. (PRWeb Dec 12, 2008)
Read the full story at http://www.prweb.com/releases/WorldBook/EncyclopediaDecouverte/prweb1734404.htm ]]>
KidzClix.net Is the “Smart” Holiday Gift Idea for Kids—Educational Games and Activities That Creatively Engage Children Month After Month
KidzClix.net has announced the launch of its premier online "magazine," designed for children ages 7-12, that includes over 30 new educational games, puzzles, kid's crafts, and mind-boggling enrichment activities each month. It also includes its own social networking site (optional) with built-in security features to protect children. (PRWeb Dec 11, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1698004.htm ]]>
Award-Winning World Book Reference Center Becomes World Book Student
New Name, New Features, Continued Commitment to Accuracy, Currency, and Reliability (PRWeb Dec 10, 2008)
Read the full story at http://www.prweb.com/releases/worldbook/student/prweb1723424.htm ]]>
Virtual School, Connections Academy, Launches Proprietary Yoga Program
Virtual School, Connections Academy, offers yoga as part of its physical education curriculum. Engaging and easy-to-follow lessons present yoga basics in a thoughtful, age-appropriate way; DVD format is convenient. (PRWeb Dec 10, 2008)
Read the full story at http://www.prweb.com/releases/Connections/Academy/prweb1729594.htm ]]>
President-Elect Barack Obama Wants Parents to Read Aloud to Their Children
President-elect Barack Obama, speaking with Tom Brokaw on Sunday morning's Meet the Press, stated, "Yes, we're going to have an education policy. Yes, we're going to be putting more money into school construction. But ultimately, we want to talk to parents about reading to their kids." This is only a part of what will ultimately become Obama's comprehensive action plan to meet our country's educational needs, but it's particularly significant because Obama's top-of-mind response focuses on the responsibility of parents to contribute to the long-term literacy development and academic success of their children through Read Aloud. (PRWeb Dec 10, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1732164.htm ]]>
Fun, Inexpensive, Educational Gifts for the Holidays from 3DVinci
3DVinci introduces computer projects, books and free online activities using Google SketchUp, a free, award-winning design application used by architects, designers, mathematicians and teachers. The 3DVinci ModelMetricks series makes fun, educational gifts for less than twenty dollars. The books and activities are appropriate for kids and teens in elementary school, middle school, and high school. (PRWeb Dec 9, 2008)
Read the full story at http://www.prweb.com/releases/educational/gifts/prweb1724784.htm ]]>
etendi.com Launches etendi BRIDGE, a New Web-Based Meeting Place to Connect Parents and Kids When They Can't Be Together
etendi BRIDGE (www.etendi.com) is an easy-to-use, interactive, safe and secure web-based meeting place that was developed specifically for non-custodial divorced parents or co-parenting situations, grandparents, military families, or the heavy business traveler. etendi BRIDGE allows family members to stay connected by using features include live video phone calling, shared spaces for photos, videos and documents, personal notes, an interactive white board, and a shared calendar. (PRWeb Dec 9, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1725584.htm ]]>
All New World Book's Living Green Series Helps Students Understand Environmental Cause and Effect
From pollution and global warming to sustainable food and energy production, World Book's Living Green explores environmental science and human's impact on the environment. (PRWeb Dec 8, 2008)
Read the full story at http://www.prweb.com/releases/WorldBook/LivingGreen/prweb1713894.htm ]]>
New Children's Book: "Lydia the Ladybug In Paris" is a Fun and Inspiring Story
A new children's book has just been released "Lydia the Ladybug In Paris," by Marie Lawrence. Many readers have become familiar with this favorite ladybug heroine, in "Lydia, the Story of How the Ladybug Earned Her Wings." This wonderful sequel is sure to be a winner with both children and adults with its adventurous plot, colorful characters, and many funny moments too. (PRWeb Dec 8, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1714004.htm ]]>
How the Grinch Stole Christmas Makes Digital Debut on kidthing, the First and Only Free Digital Media Player Made Just for Kids
kidthing Also Adds One Fish, Two Fish, Red Fish Blue Fish to the Only Available Collection of Digital Dr. Seuss Books (PRWeb Dec 4, 2008)
Read the full story at http://www.prweb.com/releases/kidthing/dr_seuss/prweb1705524.htm ]]>
THRASS UK to be Key Partner in Major New ICT Project for Teachers
THRASS UK is delighted to announce that it is to be a key partner in the forthcoming Memory 4 Teachers project, a major new ICT initiative in the UK education sector. (PRWeb Dec 4, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1700944.htm ]]>
Kim Shapiro, Internet Industry Professional Turned Stay-At-Home Mom, Has Created A Fresh Concept In Youth Oriented Websites
KIDZARONI.com was created to provide lots of fun content for kids and a safe place to learn social networking skills. (PRWeb Dec 4, 2008)
Read the full story at http://www.prweb.com/releases/Kids_Safe/Kidzaroni/prweb1707464.htm ]]>
Your T.R.I.P. to Reading Success
The Targeted Reading Improvement Program, or T.R.I.P., now promises to teach children how to read, on their own time and at their own pace. (PRWeb Dec 4, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1695834.htm ]]>
Play Value vs. Pay Value in Educational Toys
Learning Express suggests ways to buy "smart" this holiday season (PRWeb Dec 3, 2008)
Read the full story at http://www.prweb.com/releases/educational-toys/learning-toys/prweb1697684.htm ]]>
Studies Point to Multisensory Approach as Most Effective Way to Teach Kids Spanish
Research-based Spanish curriculum uses art, music and games to address diverse learning styles of young students. (PRWeb Dec 3, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1688644.htm ]]>
How Effective Is Student Aid? Without More Research, It's Impossible to Know
NASFAA launches the Dallas Martin Endowment for Public Policy and Student Aid to support student aid research and policy analysis (PRWeb Dec 3, 2008)
Read the full story at http://www.prweb.com/releases/2008/12/prweb1689874.htm ]]>
on the rise. Many homeowners failed to calculate how much their mortgages could adjust to. Some have seen large increases that they are unable to afford. Do all of the math and always prepare for the worst case scenario when considering an adjustable rate mortgage. Article Source: http://www.articlemap.com Rate Empire, an internet consumer banking and mortgage marketplace, is a destination site of personal finance, investing, taxes and mortgage rates. Rate Empire also operates a financial portal #1 Best Mortgage Rate and #1 Home Improvement Services
| |
