How do they work? Option one mortgage loans are basically interest only mortgage loans, except that first year, you pay only 1.25% of interest on loan. The remainder of interest that is accruing is being added to loan amount. The second year of loan you pay more interest until gradually you are paying either full interest only payments or fully amortized payments (interest & principle). The reason loans are called option loans is because every time you have a payment due, you have option of paying less than interest only portion, interest only or a fully amortized payment. This option would be good in a situation where your income is sporadic.

This mortgage loan type typically gives you 4 payment options in every bill.

Here are your typical monthly payment options:

Option #1 – Pay a 15-Year fully amortized payment amount (p&i)

Option #2 – Pay a 30-Year fully amortized payment amount (p&i)

Option #3 – Pay interest-only portion of loan (Interest Only)

Option #4 – Make a partial interest payment (1.25% - 1.95% depending on your loan type) and defer paying additional interest to total loan amount. (Deferred interest can be counteracted by making bi-monthly payments and by property appreciation)

This type of loan is good if you want to:

Wait a while to refinance again – If interest rates drop again, so does your payment. If you want to accelerate your payments and increase equity quick, pay more on your loan and it will be applied to future payments & will be directly applied to principle balance. Will you want a 30-year loan? Keep option to pay your loan as a 30-year, 15-year, or interest only payments.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce cost of car insurance. Understanding discounts and how they can affect car insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in process.

Read below to identify possible discounts that could help you save money on car insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Car Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not result of a violation or infraction.

Some insurers will give you a discount for having multiple cars. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in last three years (some companies require five years) then you could be eligible for a safe driver's discount.