|
Other Consulting Articles
Career Advice
I often get asked questions about careers in IT (Information Technology).<br />After all, I've been a Vice President of Consulting (twice for two different<br />companies), Vice President
Why Get a Microsoft MCSE Certification?
<br />Why Get a Microsoft MCSE Certification?<br /> <br />In the years of the dot com boom and bust, the Microsoft MCSE Certification has gotten its eye blackened over an over. Paper
Yahoo Store: The Best E-commerce Platform for SEO
If you’re a small business with a goal of doing between $500,000 and $15 million in annual e-commerce sales, you need to learn more about Yahoo Merchant Solutions. And to answer your first question…
Are You A Rhino? Success Requires it!
Are You A Rhino? Success Requires it!By Lena SanchezThe Rhinoceros is a majestic animal. Be it maybe ugly to some, but majestic no less. When the Rhino wants to get somewhere nothing can stop it. A Rhino
The Dark Side of Help Desk SLAs
<br />You just signed a Help Desk Service Level Agreement (SLA) and now think things will get easier. However, you may soon be falling into one of these traps:<br /> <br />1) COVERING
|
|
Recent Consulting News
Black & Veatch Named As A Top Consulting Company For Water Industry In China (PublicWorks.com)
Black & Veatch has been selected by H2O-china.com as one of the top consulting companies that operated in the China water industry during 2006
Nationwide Risk Consulting and Subrogation Partners Announce Their Joint Venture on Cost-Saving Services for the ... (Business Wire via Yahoo! Finance)
NEW YORK----Nationwide Risk Consulting, Inc., a premiere insurance consulting firm and Subrogation Partners, LLC, the leading U.S. claims subrogation specialist for P&C carriers, self-insureds and state and local governments, have partnered together to provide claim cost reduction services to self-insured markets in the insurance industry.
Mercer Management Consulting to acquire CAVOK International - Consultant News
Mercer Management Consulting to acquire CAVOK International
Consultant News, UK - 8 hours ago
Global strategy and operations consulting firm Mercer Management Consulting has signed a letter of intent to acquire the assets of CAVOK International, ...
Mercer Management Consulting to Acquire CAVOK International Business Wire (press release)
all 3 news articles
|
|
Each of my consulting sites gives factual information about a variety of topics to help you answer questions about consulting and advertising computer consulting and even management consulting and hr consulting. My aim is to offer only the best wisdom on each of these topics. My purpose is to save you some time. I hope it helps.
Option One Mortgage Loans – Getting an Option ARM or Option One Mortgage Loan
Have you heard about or been interested in finding out more about option one mortgage loans? They are becoming very popular, but its important to understand how they work before you apply for one. I will describe, in this article, an overview of the most common type of option ARM mortgage loan or option one mortgage loan.
How do they work? Option one mortgage loans are basically interest only mortgage loans, except that the first year, you pay only 1.25% of the interest on the loan. The remainder of the interest that is accruing is being added to the loan amount. The second year of the loan you pay more interest until gradually you are paying either full interest only payments or fully amortized payments (interest & principle). The reason the loans are called option loans is because every time you have a payment due, you have the option of paying the less than interest only portion, interest only or a fully amortized payment. This option would be good in a situation where your income is sporadic.
This mortgage loan type typically gives you 4 payment options in every bill.
Here are your typical monthly payment options:
Option #1 – Pay a 15-Year fully amortized payment amount (p&i)
Option #2 – Pay a 30-Year fully amortized payment amount (p&i)
Option #3 – Pay the interest-only portion of the loan (Interest Only)
Option #4 – Make a partial interest payment (1.25% - 1.95% depending on your loan type) and defer paying the additional interest to the total loan amount. (Deferred interest can be counteracted by making bi-monthly payments and by property appreciation)
This type of loan is good if you want to:
Wait a while to refinance again – If interest rates drop again, so does your payment. If you want to accelerate your payments and increase equity quick, pay more on your loan and it will be applied to future payments & will be directly applied to the principle balance. Will you want a 30-year loan? Keep the option to pay your loan as a 30-year, 15-year, or interest only payments.
Have an adjustable rate mortgage but want stability – This loan has a payment cap. The interest rate on this loan is based on the 12 month-MTA index, the most stable index of the 4 main indexes (COFI, LIBOR, MTA & CMT). This index is always below prime. The interest rate is based on the world economic markets which have been steadily coming down over the last 3 years. This loan has a 5-year fixed payment option as well.
Invest your payment savings in something else – This could open up opportunities for you if you could invest in real estate, the stock market or another investment when you use the extra $500-1000+ a month you free up from your property payment.
Pay off debt with your payment savings – You can use the payment savings to pay off other debt.
Have security and options in your mortgage loan – The main benefit to this type of loan is the security of a mortgage payment that you control. You decide at any time what kind of a mortgage you want. If all goes well in your future, you have the freedom to pay your 30 year loan into a 15 year loan without even consulting another mortgage broker.
Get more home for your money – You can qualify for more home with these low payment options.
Who Can Qualify? Qualifying for this loan is basically the same as any other loan, it is based on credit, equity & assets, if you are strong in 1 of these or 2 of these, you could probably qualify and with lowest rate possible.
What if I want to take out a stated income loan? “Stated Income” or “No income/assets” loans are possible with this Option One Loan.
These are just general guidelines and information about this type of loan. You will want to discuss all of these details with your broker or lender before you actually complete the loan. These factors may vary with each individual lender.
Many lenders do not offer their customers this type of loan. If you are seeking an option one or option ARM loan, you will need to talk to your broker about it or find a broker that can do this type of loan. To see our recommended lenders for this type of loan. Visit here: Option One Mortgage Lenders.
About the Author
Written by Carrie Reeder, Owner of ABC Loan Guide. Carrie's website is an informational mortgage loan website. Her website has articles and a list of recommended mortgage lenders for many different types of mortgage loans.
I believe the point is integrity. I will always find the optimal advertising computer consulting information and share it openly. That is its own reward. There are additional articles for you at this consulting site. I appreciate that you recognize excellence when you see it.
Add a Comment
|