Why might an arm not be the right mortgage for you

Assignment Help Finance Basics
Reference no: EM132673445

You are about to purchase your first home and receive an advertisement regarding adjustable-rate mortgages (ARMs). The interest rate on the ARM is lower than that on a fixed rate mortgage. The advertisement mentions that there would be a payment cap on your monthly payments and you would have the option to convert to a fixed-rate mortgage. You are tempted. Interest rates are currently low by historical standards and you are anxious to buy a house and stay in it for the long term.

Why might an ARM not be the right mortgage for you?

Reference no: EM132673445

Questions Cloud

What are the alternatives for the year : The pledge is carried out as follows: $15,000 on December 12, 2019; $25,000 on February 13, 2020; What are the alternatives for the year
Explain the disease prevention theoretical model : Prepare a PowerPoint presentation explaining the role of the Family Nurse Practitioner as Health Promoter based on the Health Promoter and Disease Prevention.
Mergers and acquisitions are gaining popularity : Mergers and acquisitions are gaining popularity as the health care industry continues to determine how to best provide services to a wide variety of patients.
What is the true rate of interest : What is the true rate of interest, j1 , that you are being charged? (hint: solve for j4 first and then calculate j1; you may need to solve for the roots of a qu
Why might an arm not be the right mortgage for you : You are about to purchase your first home and receive an advertisement regarding adjustable-rate mortgages (ARMs). The interest rate on the ARM is lower
Explain the concept of competitor analysis : Discuss the importance of competitive advantage and why understanding the competition is important. Explain the concept of a competitor analysis.
What is the down-payment : What is the down-payment she can make on this new property? Hint: First find the monthly payments she must make.
Discuss the current trend in the use of antibiotics : Discuss the current trend in the use of antibiotics for treatment of ailments such as sinusitis, bronchitis, and pharyngitis, the practice implications.
What are the Federal income tax consequences : Robin also reported a net long-term capital loss in 2018 of $2,000, which it couldnot use, and ordinary income of $13,000. What are the Federal income tax

Reviews

Write a Review

Finance Basics Questions & Answers

  Downward motors has offered vicki

Downward Motors has offered Vicki either a $2,500 rebate or a 2%, 4-year loan on the new SUV she is purchasing for $33,000 with a $3,000 down payment.

  Management add to stockholders

Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 34%. What was the firm's economic value added (EVA),

  How much will an american consumer pay

How much will an American consumer pay in US Dollar if the nominal exchange rate is 0.81570 EUR/1US$ (Assume no transactions costs)?

  What is the companys long term debt

A company has $1,406 in inventory, $4,863 in net fixed assets, $688 in accounts receivable, $314 in cash, $658 in accounts payable, and $5,458 in equity.

  What are the sharpe and treynor ratios for the fund

Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.95.

  Determining the uniform distribution

Consider the points A(1, 0), B(0, 1), and O(0, 0) in the xy-plane (O is the origin). On the segment OA, we randomly select a point D.

  Explain the demand side fiscal policy

Explain the difference between typical demandside fiscal policy and supply-side fiscal policy. For each of the following fiscal policy proposals, determine.

  Find net cost of machine for capital budgeting purposes

You must assess a proposal to buy a new milling equipment. The base price is $108,00, and shipping and installation costs would be another $12,500.

  Find the number of days to pay suppliers

Pennington's has yearly sales of $1.46 million. The cost of goods sold is equal to 78% of sales. The company has an average accounts receivable balance of $148,900 & an average accounts payable balance of $163,500.

  Advantages and disadvantages of customer satisfaction

What is the advantages and disadvantages of customer satisfaction? State examples.

  How much would you have in 40 years

If you contribute 7% of salary into a 401-(k) plan at the end of every year and earn 8% return a year, how much would you have in 40 years?

  What kind of deal did the soccer player snag

Assuming all payments, except the first $2 million are paid at the end of each year and the discount rate is 9% what kind of deal did the soccer player snag?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd