A casual player of Monopoly might think thats it's a game of chance and that the winner is determined by rolls of the dice. Watching the best players in the world has shown me it's not. The winners are actually masters of strategy and negotiation. They know how to minimize the impact of bad luck - and to put themselves in the way of an undue share of lucky breaks.
Philips Orbanes, Harvard Business Review
In The News...
Japan became the latest economy to fall into a recession as the 0.1% contraction in the third quarter for the first time in seven years as the financial crisis slowed demand for Japanese exports with France not far behind. The International Monetary Fund...
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- Fixed Rate Loans—An excellent way to lock into a low interest rate for the life of your loan.
- Adjustable Rate Mortgages (ARMs)—The flexible loan, with lower initial rates and payments.
- Initial Fixed Rate Loan—Start with a rate generally lower than standard fixed rate loans.
| 30 Year Fixed Rate |
| Appropriate for borrowers who:
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Loan Parameters
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Plan to live in the property over 10 years
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Like total payment stability
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Interest rate & monthly payment remain the same for 30 years
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| 15 Year Fixed Rate |
| Appropriate for borrowers who:
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Loan Parameters
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Plan on staying in property over 10-15 years
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Want to pay off property faster than 30 years
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Lower interest rate than 30 year loan
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Interest rate & monthly payment remain the same for 15 years
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| 10/1 Year semi-fixed |
| Appropriate for borrowers who:
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Loan Parameters
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Plan to live in property approximately 10 to 12 years
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Like initial payment stability; can accept interest rate change later
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Interest rate & monthly payment fixed for the first 10 years
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Starting the 11th year, interest rate adjusted every year, therefore, payment is subject to change every year for remainder of loan
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| 7/23 (2-Step) or '30/7 + 23' |
| Appropriate for borrowers who:
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Loan Parameters
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Plan to live in property approximately 7 to 8 years
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Can handle one payment adjustment
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Interest rate & monthly payment fixed for the first 7 years
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Conversion option: On the 8th year, interest rate adjusted to reflect prevailing fixed interest rates. Resulting payment will remain the same for remainder of loan
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| 7/1 Year semi-fixed rate |
| Appropriate for borrowers who:
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Loan Parameters
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Plan to live in property approximately 7 to 8 years
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Like initial payment stabilityand can handle change later
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Interest rate & monthly payment fixed for the first 7 years
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Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
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| 5/25 (2-Step) or '30/5 + 25' |
| Appropriate for borrowers who:
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Loan Parameters
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Plan to live in property approximately 5 to 6 years
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Can handle one payment adjustment
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Interest rate & monthly payment remain fixed for the first 5 years
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Conversion option: On the 6th year, interest rate adjusted to reflect prevailing fixed interest rates. Resulting payment will remain the same for remainder of loan
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| 5/5 & 5/1 Year semi-fixed rate |
| Appropriate for borrowers who:
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Loan Parameters
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Plan to live in property approximately 5 to 6 years
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Like initial payment stability, can accept later changes
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Interest rate & monthly payment remain fixed for the first 5 years
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Starting the 6th year, interest rate adjusted every 5 years(for 5/5 ARM) and every year (for 5/1 ARM)
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| 3/3 & 3/1 Year semi-fixed |
| Appropriate for borrowers who:
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Loan Parameters
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Plan to live in property 3 years or less
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Like initial payment stability, can accept later changes
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Interest rate & monthly payment remain fixed for the first 3 years
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Starting 4th year, interest rate adjusted every 3 years (for 3/3 ARM) and every year (for 3/1 ARM)
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| Adjustable rate loans |
| Appropriate for borrowers who:
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Loan Parameters
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Want to take advantage of lowest rate possible
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Are willing to accept yearly payment changes OR
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Cannot qualify at higher rate programs
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Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term
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Potential higher payments (at maximum interest rate)
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