by: LendingTree Editorial Staff
With most mortgages, your payment is the same every month. But what if your paycheck isn’t so regular? Would you like to be able to vary your mortgage payment depending on your cash flow? An option ARM -- also called a flex-ARM or pick-a-payment loan -- allows you to do just that.
How does it work?
An option ARM is an adjustable-rate mortgage with a twist. You don’t pay a set amount each month. Instead, the lender sends a monthly statement with up to four payment options. You simply choose the amount you want to pay that month and then submit your payment.
The options vary, but here’s the most common menu:
Minimum payment: This is calculated using an “initial” interest rate that can start as low as 1.25 percent. Because this payment is so low, it’s useful for months when you don’t have much cash on hand, perhaps because you are waiting for a commission or bonus check. But any unpaid interest gets deferred, or added to the principal of the loan, so your principal grows.
Interest only: You pay all the interest due, but none of the principal. This doesn’t reduce your mortgage balance, but it allows you to avoid deferring interest.
30-year amortized: This matches the monthly payment of a mortgage amortized over 30 years at your current interest rate. It includes both principal and interest.
15-year amortized: The same as above, but amortized over 15 years. This is the highest monthly payment. Choosing it allows you to reduce your principal faster than any other option.
The fine print
The biggest caveat with option ARMs is that those enticing initial rates are short-lived. The low minimum payments that make these mortgages so attractive can increase dramatically. In addition, every five years, the loan is recast -- that is, a new amortization schedule is drawn up to ensure that the remaining balance will be paid off by the end of the loan’s term. When that happens, the minimum payment can be pushed even higher.
What’s more, if you defer too much interest, you can reach what’s called negative amortization. If your balance grows to 10 percent to 25 percent (depending on state law) greater than the original principal, your loan is automatically recast and you have to start paying the fully amortized rate, which will increase your monthly payments.
Another potential downside of option ARMs is that they’re more complicated than most other mortgages. Home buyers may be seduced without fully understanding how much the minimum payments will increase over the long-term. When the monthly amounts go up, these people can experience payment shock.
To learn more about flexible payment mortgages, visit http://www.lendingtree.com/cec/yourhome/yourmortgage/open-arms.asp
About The Author
The editorial staff at LendingTree is committed to helping consumers become smarter borrowers. Visit http://www.lendingtree.com/cec for more information and tips on buying, selling, and financing a home. Copyright 1998-2006, LendingTree, LLC
ArticleCity.com - your one-stop source for free articles.
Sunday, April 30, 2006
Suffer Consequences if You Let Health Insurance Lapse.
by: Brian Thacker
If you are between jobs and you are considering not paying for COBRA health insurance benefits, you may need to look at alternative interim insurance coverage. COBRA is the law that allows employees to keep their health insurance coverage for 18 months once they leave their job by paying expensive premiums. While COBRA may not be your best option for health insurance, Less expensive medical plans may be an important and necessary expense.
All new health insurance plans are allowed to force new subscribers to suffer a 12 month waiting period for pre-existing conditions. Fortunately there is another law that allows for portability of coverage without having to suffer pre-existing condition waiting periods. That law says that if you have had CONTINUOUS COVERAGE for the 12 months prior to and leading up to the beginning of the new insurance coverage, you will be given credit toward any new pre-existing condition waiting period. If you had 6 months of continuous health insurance coverage prior to taking out your new policy, 6 months would be applied to the 12 month waiting period and bring the new pre-existing condition waiting period down to 6 months. If you had 12 months of continuous coverage, you will not have any waiting period for a pre-existing condition on the new health insurance plan.
CONTINUOUS COVERAGE is defined as continuous health insurance coverage with no lapse of more than 62 days. If you go more than 62 days without coverage, you may have to suffer the full waiting period for pre-existing conditions. For example, if you were taking High Blood Pressure medication, you may have to wait 12 months after starting and paying for the new insurance before the insurance would cover the High Blood Pressure medication.
COBRA might be too expensive for you. However you can get a high deductible individual plan that will satisfy the continuous coverage requirements at a much lower cost. Some short-term insurance plans do not meet the requirements to satisfy the portability law. Speak with a health insurance agent like those at http://www.thackeragency.com to make sure you maintain continuous insurance coverage at the most affordable price. Tell the agent your particular situation and they'll be glad to put you in the best insurance product for you.
About The Author
Brian Thacker is a health insurance agent and owner of two insurance websites, http://www.thackeragency.com and http://www.short-termhealthinsurance.com. He has been serving his clients for more than 10 years.
ArticleCity.com - your one-stop source for free articles.
If you are between jobs and you are considering not paying for COBRA health insurance benefits, you may need to look at alternative interim insurance coverage. COBRA is the law that allows employees to keep their health insurance coverage for 18 months once they leave their job by paying expensive premiums. While COBRA may not be your best option for health insurance, Less expensive medical plans may be an important and necessary expense.
All new health insurance plans are allowed to force new subscribers to suffer a 12 month waiting period for pre-existing conditions. Fortunately there is another law that allows for portability of coverage without having to suffer pre-existing condition waiting periods. That law says that if you have had CONTINUOUS COVERAGE for the 12 months prior to and leading up to the beginning of the new insurance coverage, you will be given credit toward any new pre-existing condition waiting period. If you had 6 months of continuous health insurance coverage prior to taking out your new policy, 6 months would be applied to the 12 month waiting period and bring the new pre-existing condition waiting period down to 6 months. If you had 12 months of continuous coverage, you will not have any waiting period for a pre-existing condition on the new health insurance plan.
CONTINUOUS COVERAGE is defined as continuous health insurance coverage with no lapse of more than 62 days. If you go more than 62 days without coverage, you may have to suffer the full waiting period for pre-existing conditions. For example, if you were taking High Blood Pressure medication, you may have to wait 12 months after starting and paying for the new insurance before the insurance would cover the High Blood Pressure medication.
COBRA might be too expensive for you. However you can get a high deductible individual plan that will satisfy the continuous coverage requirements at a much lower cost. Some short-term insurance plans do not meet the requirements to satisfy the portability law. Speak with a health insurance agent like those at http://www.thackeragency.com to make sure you maintain continuous insurance coverage at the most affordable price. Tell the agent your particular situation and they'll be glad to put you in the best insurance product for you.
About The Author
Brian Thacker is a health insurance agent and owner of two insurance websites, http://www.thackeragency.com and http://www.short-termhealthinsurance.com. He has been serving his clients for more than 10 years.
ArticleCity.com - your one-stop source for free articles.
Teeth Bleaching Facts
by: Albreht Moy
Unlike whitening toothpastes,which only remove surface stains to reveal the underlying whiteness of teeth, bleaching agents actually make teeth whiter.
The most common teeth bleaching agents are hydrogen peroxide and carbamide peroxide.
The effectiveness of teeth bleaching depends on the color of your teeth. Bleaching works best for yellow stains,while gray teeth, which can result from certain antibiotics, are much harder to whiten.People who have stains from smoking,red wine or coffee can get very good results with teeth whitening.
There are two different ways to get whiter teeth:dental (in-office) whitening, and using a home bleaching kit available through a dentist.
A dentist applies a whitening gel,containing a high concentration of hydrogen peroxide, to your teeth, which is then activated by a special blue high intensity light or laser,causing the gel to release the oxygen molecules.The laser merely activates the bleaching gel,it doesn't actually penetrate the teeth.
The results depend on the shade of your teeth before bleaching.
While in-office teeth bleaching is the safest route to go, home teeth bleaching can be also be safe,and effective,if done properly and under the supervision of a dentist.
Tray teeth whitening technique involves the use of a plastic tray that is filled with bleaching gel and then fitted over your teeth.By keeping the bleaching gel in contact with your teeth, for the prescribed period of time, your teeth will get whiter.Persons who are using the teeth bleaching products should always ask a dentist for advice.
Increased tooth sensitivity and gum irritation and are the most common side effects of teeth bleaching.Some people even experience extreme pain.Your dentist will advise you on the appropriate steps to take if your teeth become sensitive during the bleaching process.
Although the results of teeth whitening can vary from person to person, most people are very satisfied with their results.But if teeth bleaching isn't working for you or if have teeth that are shaped badly or crooked, veneers may be the option.
About The Author
Albreht Moy owns http://www.moredetailsabout.com .Get more details about dental plans at http://www.moredetailsabout.com/Dental/index.htm.
ArticleCity.com - your one-stop source for free articles.
Unlike whitening toothpastes,which only remove surface stains to reveal the underlying whiteness of teeth, bleaching agents actually make teeth whiter.
The most common teeth bleaching agents are hydrogen peroxide and carbamide peroxide.
The effectiveness of teeth bleaching depends on the color of your teeth. Bleaching works best for yellow stains,while gray teeth, which can result from certain antibiotics, are much harder to whiten.People who have stains from smoking,red wine or coffee can get very good results with teeth whitening.
There are two different ways to get whiter teeth:dental (in-office) whitening, and using a home bleaching kit available through a dentist.
A dentist applies a whitening gel,containing a high concentration of hydrogen peroxide, to your teeth, which is then activated by a special blue high intensity light or laser,causing the gel to release the oxygen molecules.The laser merely activates the bleaching gel,it doesn't actually penetrate the teeth.
The results depend on the shade of your teeth before bleaching.
While in-office teeth bleaching is the safest route to go, home teeth bleaching can be also be safe,and effective,if done properly and under the supervision of a dentist.
Tray teeth whitening technique involves the use of a plastic tray that is filled with bleaching gel and then fitted over your teeth.By keeping the bleaching gel in contact with your teeth, for the prescribed period of time, your teeth will get whiter.Persons who are using the teeth bleaching products should always ask a dentist for advice.
Increased tooth sensitivity and gum irritation and are the most common side effects of teeth bleaching.Some people even experience extreme pain.Your dentist will advise you on the appropriate steps to take if your teeth become sensitive during the bleaching process.
Although the results of teeth whitening can vary from person to person, most people are very satisfied with their results.But if teeth bleaching isn't working for you or if have teeth that are shaped badly or crooked, veneers may be the option.
About The Author
Albreht Moy owns http://www.moredetailsabout.com .Get more details about dental plans at http://www.moredetailsabout.com/Dental/index.htm.
ArticleCity.com - your one-stop source for free articles.
Subscribe to:
Comments (Atom)