by: Charlie Essmeier
With the growing interest in real estate purchasing and speculation, more and more lenders are offering ?nontraditional? types of mortgages. These include adjustable rate mortgages (ARM) of every shape and size, the more popular interest-only mortgage, and the very dangerous Option ARM mortgage, which can cause the amount you owe to actually increase as time passes. One rapidly growing sector of the lending market is the so-called ?subprime? market, which caters to consumers with poor credit records. The subprime market is a profitable one, as lenders offer loans to consumers whose poor payment history targets them as risky clients. Yes, they are risky clients, but the lenders charge fees and interest rates that are high enough to offset the additional risk. People who are interested in purchasing a home should be careful, however, as many people who should qualify for traditional loans are being pushed into higher-priced subprime loans instead.
The subprime market is quite a lucrative one for lenders, who are able to charge higher fees and interest rates due to the increased risk posed by clients with substandard credit histories. A subprime borrower might pay an interest rate that is several percentage points higher than that of a traditional loan, and the fees may include several additional ?points? as administrative fees. A point is one percent of the loan amount. This can add several thousand dollars to the closing costs and tens of thousands of dollars to the cost of the loan over the life of the typical 30-year mortgage.
While it is understood that customers with poor credit histories represent a higher risk to the lender, potential borrowers need to make sure that they aren?t classified as ?subprime? by their prospective lenders. Studies show that up to 15% of subprime borrowers have credit scores that should have entitled them to loans at lower, more traditional interest rates. What this means for potential borrowers is that you should shop around for the best price on a loan and not accept it as fact when a lender tells you that you don?t qualify for the traditional rates. The Federal Trade Commission is investigating several lenders who have increased their profits tremendously by steering borrowers who should have qualified for low-interest loans into higher-interest subprime loans, claiming that they didn?t qualify for the lower rate.
How can you avoid such problems? Obtain a copy of your credit report. You can obtain one, with your credit score, from any of the three major credit bureaus ? Experian, Equifax, or Trans Union. As a rule, lenders offer subprime rates to customers who have credit scores below 620. If your score is higher than that, you should be able to qualify for a better interest rate. If not, you can either accept the higher rates from lenders, or take time to improve your score by paying off some bills in a timely manner.
About The Author
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.homeequityhelp.net, a site devoted to information regarding home equity lending.
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Tips For Travellers To The Tropics
Tips For Travellers To The Tropics
by: T. O' Donnell
I went on my first holiday to the tropics recently. I was afraid of catching a disease, so I did a bit of research, and took some precautions. Here are some tips I found useful.
1. Get your shots.
I spent a short time in areas relatively free of mosquito-borne disease. The key word is 'relatively'. A two week holiday in an urban area is probably alright. If you're staying for months, or in an area flagged as dangerous, get your shots well in advance. Don't leave it until the last minute, as by then it'll be too late! The drugs need some time to 'kick in', and your doctor may have to order them in advance.
2. Get an insect repellent.
I made one for mosquitoes by mixing citronella with olive oil. Citronella is an essential oil (an essence). I rubbed the mixture on all exposed areas morning and night, and after washing. Seemed to do the trick. I put too much oil in, I think,...
Tips For Travellers To The Tropics
Mortgages > Tips For Travellers To The Tropics
Should you Get an Interest-only Home Mortgage?
Should you Get an Interest-only Home Mortgage?
by: Mark Lambie
Before you consider taking out an interest-only mortgage, you should first understand what they are. Unlike traditional, fixed-rate mortgages, interest-only mortgages allows the borrower to initially pay the interest on the principal for a short period of time, rather than making payments on both the principal and the interest. This is how it works: say, for example, you've taken out a mortgage for $100,00.00, which would require a monthly payment of around $1,000.00. However, with an interest-only mortgage, the same payment would only amount to around $695.00. You could use the extra money to pay existing debts, like credit cards or student loans, or perhaps invest it.
The concept of an interest-only home loan is not a new one. A descendant of the jumbo market, these types of mortgages were initially geared towards those who intended to utilise the excess cash for other types of...
Should you Get an Interest-only Home Mortgage?
Mortgages > Should you Get an Interest-only Home Mortgage?
Deliver Your Web Site From Evil (Part 1)
Deliver Your Web Site From Evil (Part 1)
by: T. O' Donnell
1. Backup your website on the server.
If you have more than one important web site, put them on different web hosts. Don't rely on your web host for backups.
Find two different hosts which allow SSH access. Get an account with each. FTP the backup of one site to the other server directly, and vice versa. Download copies to your home computer as well.
2. Put a file called 'index.html' in every major or important directory in your website, if it doesn't already have one.
This stops people trying to peek at other files in the same directory.
3. Do not use old versions of FormMail. Do not use scripts that are newly released, unless you know how to check for security holes.
They should filter input like # or >. Search on the terms 'Script Name bug' or 'Script Name security'.
4. Rename any email scripts you download before installing them.
Why...
Deliver Your Web Site From Evil (Part 1)
Mortgages > Deliver Your Web Site From Evil (Part 1)
Buy To Let Mortgages: Long Term Investment On The Concrete Structure
Buy To Let Mortgages: Long Term Investment On The Concrete Structure
by: Amanda Thompson
Buy to let mortgage market was worth ?21.8 billion in 2004 and accounted to 38.2 % of commercial market in the same year. The buy to let market has grown more than any market as a whole ? which is remarkable. Such a strong market spells nothing but benefit to mortgage hopeful.
Buy to let mortgage was a constructive effort by The Association of Residential Letting Agents (ARLA) to encourage growth in the private rented sector.
Buy to let mortgage is a specialized product for a special mortgage product. However, there is little difference between this and other mortgage products.
If you understand the various details of buy to let mortgage, there is no way that you won?t be successful in your attempt. Every buy to let mortgage will undergo the usual mortgage guideline. The lender will check your credit worthiness, value of your...
Mortgages > Buy To Let Mortgages: Long Term Investment On The Concrete Structure