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When buying a property Nike Air Max 1 Just Do It Naranja En línea , a loan from the mortgage broker or local bank is often needed by the purchaser to purchase the property. There are two mainstream types of loans (with different variations of each); fixed-rate loans and adjustable-rate loans (from this point forward referred to as ARMs). The paragraphs below outline the dangerous possibility of negative amortization when using an ARM to finance a real estate purchase.


An ARM is a mortgage that has an interest rate that adjusts periodically, often every six or 12 months. At these intervals, the interest rate is compared to a variable, often the interest paid on 30-year Treasury Notes (there are many benefits and disadvantages to using an ARM which are outside the scope of this article). With the basic understanding of an ARM cleared up Rebajas Hombre Nike Free RN 2018 Just Do It Negras Blancas , it is time proceed to the primary purpose of this article; negative amortization.


On a normal 30-year fixed loan the loan balance is gradually reduced as one makes monthly mortgage payments. This process of lowering the loan balance over time is called amortization. This same process also happens with ARMs with one major difference. The ARM has the potential to reverse the amortization process, thus adding to the loan balance and the amount that one owes on the loan. This is called negative amortization and it can literally destroy ones credit, lead to bankruptcy, and cast financial doom on the buyer for years to come. Here's how it happens:


1.) The ARM has a cap on the increase of the monthly payment that one can pay Zapatillas Nike Air Max 90 Ultra Essential Hombre Azules , $500.00 for example. $50.00 of that loan is principle and $450.00 is the interest. This means that no matter how high interest rates fluctuate, the loan's owner does not have to pay more than $500.00 a month.


2.) The ARM does NOT have a cap on the monthly interest rate increase. For example, if the monthly loan payment is $500.00 as mentioned above, then the monthly payment is "capped-out" and can go no higher. But now the time comes for the loan's interest rate to be evaluated and rates have went up 1% since the last rate evaluation.


Now is the time to put step one and two together.


Since the loan payment is already the highest it can go per month at $500.00 Hombre Nike Air Max 90 Premium Negras Blancas Baratas , the latest rate increase of 1% is not reflected in the monthly payment. This means that every month the 1% interest will be added onto the balance of the loan. So every month when one pays the $500.00 mortgage, instead of the amortization process taking place to lessen the loan balance, the opposite is happening. The negative amortization process is taking place, adding the 1% interest to the loan amount every month and increasing the loan's balance.


To sum things up Nike Air Max 90 EZ Blancas Ofertas , the above process results in a situation that mirrors credit card debt. The $500.00 monthly mortgage has turned into a monthly minimum payment resembling a credit card's monthly minimum payment. Everyone knows what happens when they pay the monthly minimum credit card payment every month; financial destruction.


With the real estate bubble rivaling the tech bubble in all-time speculative greatness, be careful to avoid the silent-but-deadly financial killer of negative amortization!

There's a lot of confusion out there regarding the use of the terms Spanish transcription and Spanish translation (one may substitute any language for Spanish). It's important to state that there is a difference between Spanish translation and Spanish transcription. It's not just the clients of transcription services who make the error but also many of the transcription companies. Transcription is simply the making of a text copy of either a speech or text source. Most commonly, transcription is the conversion of speech from an audiovideo source to a text format. However, papers such as passports Hombre Nike Air Max 90 Essential Azules Blancas Baratas , handwritten letters, and subpoenas also often find their way to a transcriptionist. The thing to remember is that transcription is always monolingual. Translation on the other hand, is bilingual.

Spanish transcription and Spanish translation shouldn't be used synonymously as they refer to separate services rendered by different professionals. For example, you will need Spanish transcription services if you have dictation from a Spanish speaking physician that needs to be transcribed as Spanish text. However Hombre Nike Air Max 270 Flyknit Negras Blancas En línea , if you have Spanish language dictation that needs to be converted to English text, then you will need SpanishEnglish translation services.

Many companies are misleading when they state that they offer Spanish transcription services. Often, what they are actually offering is Spanish audio translation. Audio translation is like audio transcription in that someone listens to a speech recording and types it in a document format. However, converting speech to text isn't the definition of transcription. (Remember text to text transcription?) When someone listens to a