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Thursday, February 18, 2010

What are the different types of Mortgage Loans available?

A mortgage is a secured loan that can help you purchase your dream house without immediately paying for it from your own resources. The property you purchase is used as the collateral to guarantee repayment of the loan. The following are some the types of mortgage loans that lenders may offer you:

Fixed-rate mortgages: A fixed-rate mortgage is a loan where the set interest rate and monthly payments remain the same throughout the term of the loan. Generally these loans are offered by lenders for a period of 15 years or 30 years. Fixed rate loans are very affordable when the interest rates are low and you can obtain it for a long term without worrying about how market interest rates perform.

Adjustable-rate mortgages: Adjustable-rate loans are different from fixed-rate loans. Unlike the fixed-rate loans, the monthly payments and interest rate varies in line with fluctuation in market rates. The rate of interest on adjustable-rate loans remain fixed for an initial period that may vary from 1 month to 10 years, and then change. These loans generally start with lower monthly payments than fixed-rate loans but may increase with rise in market interest rates.

Jumbo mortgage: A jumbo mortgage is a loan amount exceeding the conventional conforming loan limits set by the two government-sponsored chattered corporations: Fannie Mae and Freddie Mac. This loan provides you an opportunity to buy a more expensive property. But the rate of interest is much higher than conforming loans.

Two-step mortgage: These home loans combine elements of both fixed-rate and adjustable-rate loans. The interest rate and monthly payments are fixed for an initial period followed by one adjustment, then again a fixed interest rate and payment for the remainder of the loan term. These loans have names such as 2/28, 5/25 or 7/23.You can obtain this home loan even if you have a lower credit score.

Each of the mortgages has its own pros and cons. Before purchasing your house, you should have a sound understanding of the various types of home loans available.

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Achievement - Power And Ability Of A Positive Mind

“Attitude is everything!” This statement carries so much truth that if every one took time to think about it and make necessary adjustment in life, then our lives would change for the better. Many times in our quest for self improvement, we have concentrated on changing and improving many things but our attitude.

Attitude is a person’s frame of mind. It is the mindset that a person has that helps him to develop a world view. Attitude is expressed by how we respond to issues. One person once said, “Life is not what happens to you but how you respond to issues”. Two individuals may encounter a similar negative situation but how they will each respond will determine the outcome.

One of the main attitudes we need to embrace is cultivating a positive mindset or attitude. As you read through history you encounter ordinary individuals who did extra ordinary things. Moses in the Bible was known to stammer in his speech but he became the deliverer. Abraham Lincoln on the other hand educated himself; he had no formal education but became the most acclaimed president in the history of the United States.

Mother Teresa, a simple nun in Calcutta also became an icon through her acts of mercy and philanthropy. The list could go on and on. What characterized these people was a positive mindset, they all believed in possibilities and they responded decisively for the good of humanity.

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