4 Important "W's" of the Adjustable Rate Mortgage

4 Important "W's" of the Adjustable Rate Mortgage
The current mortgage meltdown in the United States has
given the adjustable rate mortgage a black eye. Used
properly, it can be a smart way to use money to your
advantage. Here's the breakdown on the ARM and how and
when to use it without hurting yourself.

What - The adjustable rate mortgage is a form of financing
that has fallen out of favor as of late. Instead of
getting an interest rate that stays the same throughout the
life of the loan, the ARM adjusts - or changes -
periodically depending on current market conditions. It
can be adjusted upwards or downwards (usually on a
quarterly basis) depending upon what direction the rate the
loan is based upon moves.

If you get an ARM loan and interest rates go up, your
payments can increase - sometimes dramatically. By the
same token, if they fall, your payments will fall. Most
lenders have a clause in your contract that sets a ceiling
on how far or how fast your rate can increase. If you have
bad credit, your lender may have a floor interest rate
built in that says your interest rate will never drop below
a certain level, regardless of how low interest rates get.

When - There's a time and a season for everything, and ARMs
are the same way. If you have serious credit issues that
you're trying to resolve, an adjustable rate mortgage just
might get you an approval when everyone else is saying
"no". At the same time, if you think you may be moving
soon, it might make sense as well.

Who - The best time to consider the adjustable rate
mortgage is if you have a lot of uncertainty or instability
in your life. For instance, if there's a strong likelihood
that your company will relocate you halfway across the
country in a few months and you're planning on selling your
home anyway, it could make good financial sense to utilize
this strategy. It could free up cash for a move. If
interest rates take a huge jump in a short period of time,
it isn't likely to hurt you much because your loan will be
paid off with the sale of your home.

Why - An ARM has less certainty than a fixed rate loan. If
you want to save money and you can handle the risk that
rates might jump dramatically upward, this might be a good
strategy. However, I want to caution you that there is a
lot of risk in taking this approach. If you can't afford
to make dramatically higher payments if rates rise or your
budget relies heavily on consistency, don't get an ARM.

As you can see, the adjustable rate mortgage doesn't come
without some risk. But if you know the risks - and the
rewards - going in, an ARM might be a sound financial
decision. The best thing you can do is to sit down with a
calculator and make some best and worst case budget
calculations. If you're a risk taker and you can handle
it, you could save a lot of money.

----------------------------------------------------
Darrin Roseborsky is a Refinance Specialist with OMAC
Mortgages, seminar speaker and president of the Roseborsky
Group and HomeRefinanceCoach.com. Darrin can help you
MAXIMIZE your equity PROPERLY and help you choose options
that make the MOST SENSE for your situation! Learn more
about how it works at: http://www.homerefinancecoach.com

Finding Affordable Car Insurance: A Discount Auto Insurance Checklist

Finding Affordable Car Insurance: A Discount Auto Insurance Checklist
If you own and drive a vehicle, in most states it's the law
to have auto insurance. You can shop around and compare
prices from various insurance companies, but you should
also ask about available discounts that could save you
money on your auto coverage. The following checklist
provides discounts you can ask about when shopping for
affordable car insurance, but the availability of discount
auto insurance varies by state and company.

Discounts for Safe Drivers

If you are a safe driver, and you have avoided having an
automobile accident or any moving violations for three
years, you may be eligible for a safe-driver discount.

* Accident free for three years
* No moving violations in three years

Discounts for Safe Cars

Many insurance companies offer discounts to policyholders
whose cars came equipped with certain safety features.
These features reduce the risk of injury and theft;
therefore, reducing the cost of auto coverage.

* Air bags
* Anti-lock brakes
* Daytime running lights
* Anti-theft device

Discounts for Students, Adult Seniors, and Others

Car insurance for young drivers is often problematic, but
full-time students who meet age and GPA requirements can
sometimes get lower auto insurance rates. These
qualifications vary by company and state. For example,
Allstate (www.allstate.com) requires full-time students to
be 25 years old or younger and unmarried to receive the
discount, but in some states, the age limit is 21. College
students who are at least 100 miles away from home are
often eligible for auto insurance discounts. If you're a
driver between 50 and 55 years of age, retired or a senior
adult, you may be eligible for discount auto insurance.
And, taking a driver training or defensive driving course
is another way you may qualify for a lower insurance cost.

* Student drivers with good grades
* College students away from home
* Drivers 50 to 55 years of age
* Adult seniors
* Driver training course
* Defensive driving course

More discounts

Other things that qualify for auto insurance discounts
include paying higher deductibles, having low annual
mileage, buying auto and home insurance with one company
and staying with one company long-term. Insurance
Information Institute (www.iii.org) suggests that
increasing your deductible to $500 could reduce your
premium by 15 to 30 percent. Increasing the deductible to
$1,000 can save you 40 percent or more. And, if you are a
low-mileage motorist, your insurer may offer a low-mileage
discount. These discounts usually apply to drivers who
carpool. Many insurance companies will give you a discount
if you buy two or more types of insurance from them, such
as homeowners or business auto insurance. If you have more
than one vehicle insured with the same company, you may
receive a multi-policy discount. Insurers sometimes reduce
premiums for long-time policyholders.

* $500 deductible
* $1,000 deductible
* Low annual mileage
* Auto and homeowners coverage with the same company
* More than one car insured with the same company
* Long-time customer

You might be surprised that so many insurance companies
provide all kinds of ways for you to receive discounted
auto coverage. Remember, though, the key to savings is
ultimately the final price, not the discounts.

----------------------------------------------------
Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.

Property Investing in the UK

Property Investing in the UK
More and more people are putting UK and international
property into their portfolio of savings and investments.
With property investing comprising a big industry in the
UK, it is natural that it is attracting a lot of investors
who are on the lookout for great investment opportunities.
If you are interested in property investing in the UK, you
might want to take a peek at what's going to be in store
for you.

The United Kingdom holds a place as one of the world's
greatest trading powers and is home to the biggest
financial center in the world. The country's economy is the
fourth largest in the world. Aside from these facts, here
are a few more that make investing in the UK a practical
alternative.

Rental Property Is Big Business in the UK

Purchasing a home today requires enormous financial
commitment. With the prices of houses constantly
increasing, a lot of young professionals perceive
house-buying as next to impossible. They find it difficult
to raise adequate capital for a deposit on a property. What
becomes the next most viable alternative is renting. This
then creates a big opportunity for property investors, who
will find the established rental market in the UK an
advantage.

Low-deposit structure. A lot of new-build properties belong
to a low-deposit structure, making it possible for property
investors to buy more than one apartment. This allows them
to spread the risk factor between units.

Buy-to-let schemes are attractive alternatives. Property
investors will find that buy-to-let financing is appealing
since many schemes allow multiple purchases without the
need for additional proof of financial standing. This is
because the mortgage is obtained on the value of the
property and the rental income rather than the individual
making the purchase.

More investors are coming in. With high city bonuses house
markets are being driven higher as a growing number of
people are seeking to invest their money in property which
is considered the most secure type of investment. Property
investing in the UK is a lucrative endeavour, but if you
don't feel too confident about being able to do it, finding
an experienced property investor to guide you would help
you get the boost you need. You can find them in property
investing web sites, or from friends or relatives who are
also in the business.

As sometimes word-of-mouth is not enough, you may want to
seek more information and advice from other property
investors who have invested in the UK. You can do this by
joining the tycoons-forum.com, where more experienced
property investors are constantly meeting up to discuss all
things related to property investing. This is one way of
gathering information on the latest and most exclusive
investment properties. You can also find resources on
different issues related to property purchasing, such as
land ownership, legal, infrastructure, rental and
management, taxation, and more.

The steady and continuing growth of the property market in
the UK poses a profitable opportunity for property
investors. As long as you are equipped with all the
information you need to have to endure in this industry and
you keep yourself well-informed, there is no reason why you
won't make it big in this business.

----------------------------------------------------
Parmdeep Vadesha is a property investment expert and
founder of the largest community of property entrepreneurs
on the web who buy below market value properties from
distressed homeowners facing repossession, divorce and
bankruptcy. He writes a monthly newsletter for over 70,000
property investors worldwide -
http://www.Property-System.com

Risks of Real Estate Investing

Risks of Real Estate Investing
All investments carry with them some degree of risk. The
same is true with real estate investing. Despite the
promise of high rewards you should be aware with the risks
involved are more often than not just as high as the
potential rewards. This is why you need to take every
possible precaution in order to minimize your losses
whenever possible or at the very least are prepared,
financially and mentally to accept the consequences of
those risks if the time comes.

How can you protect your investment?

Know the real estate laws. It doesn't matter if you are a
novice or a savvy investor, ignorance of the rights and
regulations can put your investment at risk. You don't
have to become an attorney, but you should be brush up on
the laws that govern the market.

Stay informed with the health of the current economic
market. Is the economy in general still improving? What
is unemployment high? What was the rate of new home
construction in the last five years? All of these variables
are good indicators of whether property values will rise,
level off, or even see a correction.

Put at least 10% down when purchasing a property. Most
novice investors might think that going with zero down
loans is a great way to dive into real estate investing,
but zero down loans are very risky. A large down payment
will create instant equity and get you a loan at a lower
interest rate. This might reduce your cash on hand, it
will lower your risk and increase the degree of capital
appreciation of your investment.

Adjustable Rate Mortgages allow investors to purchase
property with less cash and an attractively low relative
rate. There are 1 year adjustable rate mortgages 5 year,
even 7 year. the number signifies how long the offered rate
is good for. Afterwards, the lender adjusts the rate
according to prevailing interest rates.

However, if you keep the property longer, that low rate
can climb several percentage points. Unless you sell or pay
down the principle on the property you can expect to be
stuck with higher monthly payments.

As the adjustable rate mortgage goes up, property values
are under pressure to level off or even decrease because
of the rise in interest rates. Your investment gets hit
twice. Of course, it's possible for rates to go down, but
that's less common and refinance is usually toward a fixed
rate, in those cases.

So, instead of being risky, take a long term view. Invest
as much as you can up front, make at least one extra
payment per year, lean toward fixed rate mortgages of the
minimum length you can afford. A 15 year mortgage pays down
the principle quicker, so you spend less on interest,
increases your equity rapidly, and usually carries a lower
rate.

Playing it safe will ensure maximum return on your
investment with minimal risk.

----------------------------------------------------
http://crazyrealtor.com is a website resource for anybody
crazy about real estate.

Recession Proof Your Retirement Without Stress

Recession Proof Your Retirement Without Stress
Today's struggling economy means that you are going to have
to recession-proof your retirement, right now! Here are
nine steps to take the stress out of retirement planning.

1. Acknowledge reality. Read, research and understand the
many challenges to putting aside enough money to retire.
Don't allow the dismal statistics to paralyze you with
stress. Take power over reality by vowing to positively
reach your goals.

2. De-stress your retirement goals. Pensions were the
mainstay of your parents' generation. Today, most Americans
outside of protected government jobs will have no pensions
or possess 401(k) plans overly dependent on a volatile
stock market. Think smaller in terms of housing,
recreation, travel and other traditional retirement goals.

3. Double your savings, right now. It is never too late to
increase your savings, even if you can only set aside a few
extra dollars a week. Simplify your life and put off major
purchases. It's better to take small steps than to feel
powerless. Every little bit will help.

4. Make retirement your priority. You will age, and the
Social Security system cannot cover the high cost of
living. Period. Put retirement at the top of your list of
priorities right now, especially if you are expecting a tax
refund this year.

5. Consult experts. Even if you can only afford one session
with an outside financial consultant, it can be money well
spent to advise you on how you can proceed. You can also
find free expertise from free seminars offered by community
colleges and informational articles on the Internet.
Today's high foreclosure rates have led to the opening of
free consumer credit and financial offices in most cities
to help people save their homes from foreclosure. Even if
you aren't facing foreclosure or don't own a home, take
advantage of the opportunity to sit in on any free
financial and credit counseling sessions available.

6. Empower yourself. Many community colleges offer
continuing education classes on finances that also focus on
retirement planning. Many of these classes are free or
low-cost, especially if you are older. Knowledge is a
powerful weapon against the stress of inaction and
ignorance.

7. Be flexible. An example of what happens when people
don't diversify is Enron. Many people whose 401 (k) or
personal investments were in Enron stock lost everything.
Diversifying your investments in savings bonds, savings
accounts, stocks, real estate or other sources also
minimizes your risk. Again, consult outside expertise and
take notes.

8. Simplify your life. Eliminating extravagances now will
prepare you to live without extravagances during your
retirement. Tighten up, and you'll be more prepared for
unexpected expenses.

9. Be proactive. The greatest majority of Americans do not
have the resources to retire at 55 or 65 or even at older
ages, as did past generations. Update your skills to be
ready to re-enter the workforce. The bonus is that an
active mind is a powerful anti-aging deterrent, in addition
to being practical. Most cities have one-stop centers
established by the U.S. Workforce Investment Act that can
help you find free or low-cost resources to update your
skills. These centers are not just for the unemployed, and
there are no age limits, so sign up for skills classes and
seminars.

We all want to recession-proof the plans we have for
retirement, but retirement planning can sometimes create
stress. We hope our tips have helped to reduce yours.

----------------------------------------------------
Ruth Klein is an award-winning business owner, best-selling
author and marketing and time management consultant whose
clients range from solo entrepreneurs to the Fortune 500.
Sign up to receive Ruth's 7 Part Mini-Course on Branding
and Productivity. http://tinyurl.com/25tqo5

Affordable Auto Insurance With a Good Credit Rating

Affordable Auto Insurance With a Good Credit Rating
Most people know they have a consumer credit score, but few
realize there is a similar ranking used by auto and
property insurance companies to rate a customer's potential
liability and it is key to getting affordable auto
insurance.

Fittingly, this is called an insurance score, but it takes
into account more than just how promptly you pay your
bills. It also incorporates data such as how many claims
you've made on past policies, how frequently and how costly
they've been to previous insurers.

This score has a dramatic impact on the cost of your auto
and property insurance premiums. According to Robert
Hartwig, president and founder of the Insurance Information
Institute (www.iii.org), a nonprofit agency designed to
help consumers with insurance questions, "These scores are
basically credit information that an insurance company uses
from your credit profile, but they then take that and
relate it to actual information regarding your claims
history or your legal history."

In other words, do you have a habit of suing people? Fair
or not, those things factor into your insurance score.
There's almost nothing you can do about it, other than keep
your credit in tip-top shape and try to avoid making
multiple claims.

"People with poorer credit tend to be associated with
relatively higher losses to insurance companies," Hartwig
says. "That group . . . can incur more claims or more
costly claims, or both."

Hartwig says this is different than a credit score because
of the manner in which information is used. "Insurance
companies don't need all the information that's in a credit
score. The insurer only takes information that correlates
with what it needs to determine. They're looking to
maximize the correlations between credit information and
loss information. If [people] tend to be financially
responsible, they tend to not be reckless behind a wheel,
they tend to maintain their homes, things like that."

Perhaps the most interesting thing about insurance scores
(and the most disconcerting) is that you can't change
them—at least, not in the short-term—because
your ranking factors in cumulative information over a
period of years. Moreover, you can't find out what your
score is because each company considers the method by which
it ranked you to be proprietary.

"You can't find out because each company makes their own
insurance score," explains Jeanne Salvatore, senior vice
president of public affairs at www.iii.org. "Each insurance
score also uses credit differently—some might just
use it in applications and some give it greater weight than
others. Underwriting (how a company determines who to
insure and for what price) is very proprietary. That is how
insurance companies compete—by being able to price
the product better than the next guy. If they gave that
away (how they rank individuals) they'd be giving away some
part of their trade secrets."

So, what exactly can a person do with this new fact of
insurance scores? Is your collision coverage too high
because of it? Why do you need high risk car insurance?

"As a consumer, what you should be doing is shopping
around, shopping for a good rate, because that ultimately
is what you want to do anyway," Salvatore says.

And it's the best way to ensure you get the most affordable
auto insurance possible.

That and drive safely!

----------------------------------------------------
Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.