Navigating the mortgage maze

first_img 42SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,John San Filippo John San Filippo is the founder and president of OmniChannel Communications Inc. He has nearly 40 years of experience in financial services and technology. He’s written for every major … Web: www.financialfeed.com Details Whether you’re buying your first home or your fifth home, your finance options can be confusing. That’s because many types of mortgage loans are available, with varying rates and terms. However, the basic difference in mortgage loans boils down to these differences:Whether the interest rate is fixed or adjustable.Whether the loan is government insured.Fixed or adjustable?As the name implies, a fixed-rate loan is a mortgage loan with an interest rate that never changes. Since the interest rate never changes, the monthly payment amount never changes, either. That means, for example, if you get a 30-year fixed rate loan and keep the loan for that long, you’ll make 360 identical payments to your lender (give or take a few dollars on the final payment).Many consumers like the predictability and stability of a fixed rate mortgage. And over time, as your income presumably grows, that fixed payment amount will seem smaller and smaller. When rates are historically low, like they are now, fixed rate mortgages are a good deal.If you’re looking for the lowest possible initial payment and you’re confident that your income will rise over time, you may want to consider an adjustable rate mortgage, or ARM. With an ARM, your initial rate is a) typically lower than the rate on a fixed rate loan, and b) locked in for five years. That means that your ARM will behave like a fixed rate loan for the first five years.But what happens after five years?Your rate will start adjusting – as often as annually and as infrequently as every five years, depending on the terms of your specific loan. It should come as no shock that ARM rates generally adjust up rather than down. And every time your rate goes up, your payment goes up, too. This can come as quite a shock to a fragile budget.Rates are expected to increase over the next several years, so if you opt for an ARM, keep in mind you may experience some serious sticker shock in five years when your rate adjusts … and it will adjust higher.Conventional or government insured?A conventional loan is one that involves just you and your lender. Pretty simple, eh? So why would you want to get the government involved in your mortgage loan?It depends on which government insured loan program we’re talking about. These loans come in three flavors: FHA, VA and USDA.An FHA (Federal Housing Administration) loan can be a good choice if you don’t have much money to put down – it only requires a down payment of 3.5 percent, while most conventional loans require a down payment between 5 and 20 percent. An FHA loan can also be helpful if your credit is less than stellar. Since your loan is insured by the government, your lender may be willing to make what may seem like a riskier loan, because the government will guarantee the bank will be repaid, at least in part, if you can’t.The rub? The FHA doesn’t insure these loans just to be nice. You actually have to pay for that mortgage insurance yourself, an amount that’s tacked to your monthly mortgage payment. However, if you get a conventional loan and have less than 20% for a down payment, many states require that you pay mortgage insurance, called PMI.If you’re a veteran of any branch of the U.S. military, you should consider a VA loan. The VA loan program is administered by the Department of Veteran Affairs. A VA loan works a lot like an FHA loan, except for one extremely important difference: A VA loan doesn’t require any down payment whatsoever. That can be huge for a cash-strapped family looking to own their own home.Finally, the U.S. Department of Agriculture offers a loan program for low-income families living in rural areas. To qualify for this program, your family can’t earn more than 115 percent of the average median income for your county.The loan types described here cover the vast majority of U.S. mortgage loans, but there are many, many subtle variations. If you have questions, your best bet is to ask a mortgage expert at your credit union.last_img read more

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Triton Knoll foundations and export cables in place

first_imgAccording to project developer RWE, the installation of the 90 monopile foundations and two lengths of 50km export cable was completed this week. Seaway 7’s Seaway Strashnov and DEME’s Innovation were in charge of installing the foundations. Triton Knoll will comprise 90 MHI Vestas 9.5 MW turbines located 32 kilometers off the Lincolnshire coast. Commissioning is planned in 2021. Boskalis’ vessel Ndurance laid and buried both lengths of the 220kV cables, which link the two offshore substation platforms to the onshore electrical network. “We are delighted to have completed this phase of construction within the summer delivery window despite the impacts of Covid19. This is a great credit to all of our supply chain partners and everyone working in the Triton Knoll team,” said Project Director for Triton Knoll and RWE Renewables Julian Garnsey.center_img “We have made excellent progress on the project to date, and look forward to installation of the first offshore turbines in early 2021.” All turbine foundations and export cables have been installed at the Triton Knoll offshore wind farm in the UK. The project is jointly owned by RWE (59%), J-Power (25%) and Kansai Electric Power (16%).last_img read more

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Cricket News IPL 2020 Auction: Kolkata To Host Next Players Auction On December 19

first_imgNew Delhi: The players’ auction for the next Indian Premier League (IPL) will be held at Kolkata for the first time, on December 19. The West Bengal capital is home to the Kolkata Knight Riders, co-owned by Bollywood star Shah Rukh Khan. The auctions have mostly been held in Bengaluru so far. The trading window that is currently open will close on November 14, and all the franchises were informed about it on Monday, according to a report in ‘ESPNCricinfo’.While the franchises were allotted Rs 82 crore each for the IPL 2019, Rs 85 crore have been allocated for the 2020 season.The franchises were originally allotted Rs 85 crore to build their teams for 2020. Every franchise will also have an additional purse of Rs three crore in addition to the balance in their kitties from the last auction.Delhi Capitals have the biggest balance — Rs 8.2 crore, followed by Rajasthan Royals at Rs 7.15 crore and Kolkata Knight Riders at Rs 6.05 crore.This year’s auction is the last one before the franchises disband next year and prepare to assemble fresh squads from 2021 at a mega auction. The glitzy event usually runs between April and May every year.Funds left with franchises ahead of IPL 2020 auction:Chennai Super Kings – Rs 3.2 croreDelhi Capitals – Rs 7.7 croreKings XI Punjab – Rs 3.7 croreKolkata Knight Riders – Rs 6.05 croreMumbai Indians – Rs 3.55 croreRajasthan Royals – Rs 7.15 croreRoyal Challengers Bangalore – Rs 1.80 croreSunrisers Hyderabad – Rs 5.30 crore.  For all the Latest Sports News News, Cricket News News, Download News Nation Android and iOS Mobile Apps.last_img read more

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