Author: Lee Car
A fixed mortgage is the most standard form of loan for home and product purchasing in the USA. Fixed rate mortgages are the most common ones and in the US about 75% of all mortgages are fixed rate mortgages. They are the most common and popular loans available because they never change so you know where you are financially.
Fixed Rate allow you the comfort of knowing that your interest rate will not change during the term selected. They are helpful because they allow you to predict what your housing payments will be in the future. A fixed rate mortgage makes it easy to plan ahead, because as the name suggests, the interest rate on your mortgage stays fixed.
A fixed rate deal is a mortgage that has a set unchanging mortgage interest rate for a given term. This in some deals can be over the whole term of the loan but will generally be over a 2, 3 and 5 year period this type of mortgage product will generally have early repayment charges that the lender will charge if the mortgage is redeemed within the incentive period and within any period that these charges would apply.
The length of the fixed rate may generally have early repayment charges that can even run beyond the set period. After which the fixed rate will revert to the lenders standard variable rate which is normally a higher rate.
Penalties may be quite high to ensure the lender keeps you in the deal for a certain time. Fixed deals now can even come with flexible features such as over and under payments and payment holidays which can be very advantageous to the borrower if used correctly. The payment holiday and over and underpayments are usually associated with a flexible mortgage but may be a feature of some flexible fixed mortgage products.
First time buyer may if lucky have a fixed rate mortgage that gives you a helping hand with no administration or arrangement fee, a free first standard valuation and no higher lending charge.
Article Source
About the Author:Pat Lee has been a UK mortgage broker for over 10 tens with a vast knowledge of buy to let, commercial, insurance and residential mortgages. http://www.MortgageBestRate.co.uk/
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Thursday, January 3, 2008
Big Car? Big Insurance Premium!
Author: Andy Adams
You may not have noticed but last year there was a change introduced in how much our vehicles cost in relation to Car Insurance premiums. More specifically, there was a change in how each vehicle is classed when taking out car insurance policies.
You won’t be seeing any major changes just yet though as most insurers are yet to introduce these new rates for modern cars, especially if you drive a 4x4 or a sporty diesel (such as a Porsche Cayenne). These kinds of car are seen as more expensive to insure as they are likely to cause a lot of damage in a crash. In the past these cars were in a classification that meant they didn’t cost as much as they do now to insure. Previously there have been 20 groups of classification since 1992, however the world of motoring has diversified significantly since then and so has been deemed fit for a revamp.
The deciding factors for which category your car fell into used to be maximum speed and acceleration, this is obviously too general considering that many cars now cost more to insure not only because of their power but the features held within. Most cars now come fitted with electric windows and airbags as standard, both features that were not as common back in ’92 and also cost more to repair. Couple this with the growing trend of cars having built-in GPS devices and more performance parts this all makes a valid case for reviewing how we value a car’s insurance.
The result of this review has seen 50 different categories to be put in place, as well as judging each car on a more comprehensive list of factors such as:
+ Repair Times
+ Performance
+ New car value
+ Even availability of body shells
The cars that will see the hardest hits are the previously mentioned 4x4s and Diesels, this is due to the Diesel cars being more powerful and 4x4s are obviously bigger and more likely to cause large amounts of damage. In some cases drivers have seen their premiums increase by 2½ times.
There are other factors that have affected motor insurance premiums such as location, if there is a spate of car thefts in your area then the insurer is going to adjust accordingly. To help combat this try to make space in your garage and keep your car in that overnight, this is a common question when getting new car insurance quotes and can make a significant difference especially if you live in one of these areas.
Another car type that has seen a high premium cost, but not necessarily an increase is the hybrid or electric cars. These are relatively new and so cost more to repair; however some motoring experts have suggested that this should even itself out as more hybrids are on the road. And with the increase in “green awareness” there is every chance that we’ll see more and more people driving some form of greener vehicle.
The fact remains that since motoring has changed so drastically over the past 16 years, in order to value car insurance , changes have been necessary. Whilst insurers have yet to fully adopt this new valuation method they are more likely to use it in the near future in order to get accurate ideas of a car’s worth. “The changes have been made to take into account the fact that there are now 6,000 models on the road.”, said Malcolm Tarling of the ABI. 'The technology in cars and the techniques needed to repair them have become much more expensive, and that makes claims more expensive to meet.”
Article Source
About the Author:Andy Adams is an experiencd UK writer working in motoring and car insurance.
You may not have noticed but last year there was a change introduced in how much our vehicles cost in relation to Car Insurance premiums. More specifically, there was a change in how each vehicle is classed when taking out car insurance policies.
You won’t be seeing any major changes just yet though as most insurers are yet to introduce these new rates for modern cars, especially if you drive a 4x4 or a sporty diesel (such as a Porsche Cayenne). These kinds of car are seen as more expensive to insure as they are likely to cause a lot of damage in a crash. In the past these cars were in a classification that meant they didn’t cost as much as they do now to insure. Previously there have been 20 groups of classification since 1992, however the world of motoring has diversified significantly since then and so has been deemed fit for a revamp.
The deciding factors for which category your car fell into used to be maximum speed and acceleration, this is obviously too general considering that many cars now cost more to insure not only because of their power but the features held within. Most cars now come fitted with electric windows and airbags as standard, both features that were not as common back in ’92 and also cost more to repair. Couple this with the growing trend of cars having built-in GPS devices and more performance parts this all makes a valid case for reviewing how we value a car’s insurance.
The result of this review has seen 50 different categories to be put in place, as well as judging each car on a more comprehensive list of factors such as:
+ Repair Times
+ Performance
+ New car value
+ Even availability of body shells
The cars that will see the hardest hits are the previously mentioned 4x4s and Diesels, this is due to the Diesel cars being more powerful and 4x4s are obviously bigger and more likely to cause large amounts of damage. In some cases drivers have seen their premiums increase by 2½ times.
There are other factors that have affected motor insurance premiums such as location, if there is a spate of car thefts in your area then the insurer is going to adjust accordingly. To help combat this try to make space in your garage and keep your car in that overnight, this is a common question when getting new car insurance quotes and can make a significant difference especially if you live in one of these areas.
Another car type that has seen a high premium cost, but not necessarily an increase is the hybrid or electric cars. These are relatively new and so cost more to repair; however some motoring experts have suggested that this should even itself out as more hybrids are on the road. And with the increase in “green awareness” there is every chance that we’ll see more and more people driving some form of greener vehicle.
The fact remains that since motoring has changed so drastically over the past 16 years, in order to value car insurance , changes have been necessary. Whilst insurers have yet to fully adopt this new valuation method they are more likely to use it in the near future in order to get accurate ideas of a car’s worth. “The changes have been made to take into account the fact that there are now 6,000 models on the road.”, said Malcolm Tarling of the ABI. 'The technology in cars and the techniques needed to repair them have become much more expensive, and that makes claims more expensive to meet.”
Article Source
About the Author:Andy Adams is an experiencd UK writer working in motoring and car insurance.
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