Payday Loan Cure - An Alternative Approach
January 6, 2008
Payday Loan need are usually symptoms of something else, something personal.
Pick up meditation and prayer and I don’t mean bombarding God or whatever higher power you believe in with requests for a loan. I mean take the time to get to know your higher Self that can help you look at life in a more balanced fashion. This knowledge can help you control emotional stuff which are a major reason for out of balance expenditures and emotional spending binges. Who knows, you may even be able to have a direct communication with God and straighten out more than your finances and debts.
Remember that the outer world is just a reflection of us inside and we cannot change our outer circumstances without changing what we think in our hearts.
The need for money and loans usually stem from a combination of low income and lack of disciplined spending habits. Take steps to improve your income which usually starts with better education. Look for ways to improve your education and acquire new skills that can help you get better jobs and higher paying positions. I know it is hard to get enough energy at the end of 50 – 60 hour week to study. But, don’t you rather have the stress of studying for a better future for a limited time than to keep worrying about payday loans for years to come?
Adjustable Rate Mortgages (ARM) Basics
January 6, 2008
This type of mortgage loan is usually lower than the fixed rate and the lower rate means lower payment that in turn means easier qualification.
Let’s take a look at some terms that help you understand ARM better.
- Margin - This is the lender’ s markup and where they make their profits. The margin is added to the index rate to determine your total interest rate.
- ARM Indexes - These are benchmarks that lenders use to determine how much the mortgage should be adjusted. The more stable the index is the more stable your adjustable loan remains. Consider both the index and the margin when you are shopping around.
- Adjustment Period - Refers to the holding period in which your interest rate will not change. You will come across ARM figures like 5-1 that means your mortgage interest remains the same for five years and then it will adjust every year.
- Interest Rate Caps - This is the maximum interest a lender can charge you.
- Periodic caps - The lenders may limit how much they can increase your loan within an adjustment period. Not all ARMs have periodic rate caps.
- Overall caps- Mortgage lenders may also limit how much the interest rate can increase over the life of the loan. Overall caps have been required by law since 1987.
- Payment Caps - The maximum amount your monthly payment can increase at each adjustment.
- Negative Amortization - In most cases a portion of your payment goes toward paying down the principal and reducing your total debt. But when the payment is not enough to even cover the interest due, the unpaid amount is added back to the loan and your total mortgage loan obligation is increased. In short, if this continues you may owe more than you started with.
- Negative amortization is the possible downside of the payment cap that keeps monthly payments from covering the cost of interest.
- As you compare lenders, loans and rates remember Henry Moore who said, “What’s important is finding out what works for you.”
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