Adjustable Rate Mortgages - Understand The Benefits Compared To A Fixed Rate Mortgage

Written by Carrie Reeder

Continued from page 1

Lenders have much more flexibility when determining margins, caps, adjustment indices and other things, so new borrowers can easily get confused or trapped by less than honest mortgage companies. One last drawback to adjustable rate mortgages is that on certain mortgages called negative amortization loans, borrowers can end up owing more money than they did at closing. This is becauserepparttar payments on these loans are set so low they only cover part ofrepparttar 147407 interest due. Any additional amount will get added intorepparttar 147408 principal balance.

As you can see there are many pros and cons to adjustable-rate mortgages. You must carefully consider your options before choosing a mortgage that is right for you. Stay informed of all of your mortgage options.

To view Carrie Reeder's list of most recommended mortgage lenders, visit this page: Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.

How To Read Your Credit Report

Written by Andy Ballentine and

Continued from page 1

Total amount borrowed, (high) credit limit or highest balance onrepparttar card

How much outstanding is still owed

Fixed monthly payments or minimum monthly amount

Status ofrepparttar 147339 account (whether open, inactive, closed, paid, etc.)

How you've conductedrepparttar 147340 account: On your Experian report, your payment history is written in plain English -- "pays on time", "always pays 30 days late", etc. Other comments may include "internal collection" (collections department) and "charged-off" or "in Default.

("Charged-off" meansrepparttar 147341 creditor has given up on collectingrepparttar 147342 account and subsequently, written offrepparttar 147343 debt.)

Other credit agency reports instead use Payment Codes denoting activity onrepparttar 147344 account. These range 1 to 9; R1 or I1 on a credit report is indicative of a good repayment history on a revolving or instalment account.


Hopefully,repparttar 147345 next section of your credit report will be blank. The public records section is, without doubt, bad news. If you have a public record, this indicates previous problems.

The kinds of things we're talking about here are major financial delinquencies such as bankruptcies, judgments and tax liens. These problems will ruin your credit report for sure.


The final section is for Inquiries. This section contains a list of every creditor who has asked to see your credit report.

The thing to note about "inquiries" is that every time a creditor asks to see your credit report, this will show up as an inquiry.

From all this activity, you can begin to see why your credit file is so detailed.

Inquiries are divided into two sections:

"Hard" inquiries - are those initiated whenever you fill out credit application.

"Soft" inquiries - are those initiated by companies who pre-qualify you before sending promotional material.

You may have heard rumours that large numbers of inquiries have a negative impact on your credit score. In fact, this is not as damning as many would have you believe.

In reality,repparttar 147346 vast majority of inquiries are ignored byrepparttar 147347 FICO (sounds like "psycho") scoring model.

This is becauserepparttar 147348 FICO model has a lead-in period that ignores all inquiries within 30 days of a mortgage or car loan approval. It also counts two or more "hard" inquiries inrepparttar 147349 same 14-day period as just one inquiry.

For example, you could have 20 "hard" inquiries in two weeks and they will only count as one.

If you find any mistakes in your credit report such as an account belonging to someone else, or a disputed amount, then you should fill outrepparttar 147350 dispute form that comes withrepparttar 147351 report. Simply followrepparttar 147352 instructions inrepparttar 147353 Explanatory Notes section.

The process of Disputing an item on your report can take some time as creditors have 30 days to respond torepparttar 147354 discrepancy byrepparttar 147355 credit reporting agency. And unfortunately, as long there remains any dispute, that dispute will also show on your credit report. Established lenders state that it's common for most reports to have errors. Some estimate that as many as 80 percent of all credit reports have some kind of error.

See also: How To Fix Your Credit Report.

Credit Repair Guides Free to Fix Bad Credit Scores. This website is designed to help you find the best information about credit and credit related issues in the United States. Download our free Credit How-tos now! Copyright 2005 Andy Ballentine and All Rights Reserved. Please note: This Resource Box MUST be included with article.

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