Hopscotching The Investment Media
The March 6, 2006 edition of Kiplinger's Personal Finance reveals the fact that adjustable-rate mortgages (ARMs) accounted for one-third of all mortgages last year, a huge jump from historic levels. The vast majority were interest-only loans or loans where borrowers paid even less than the stated rate. Such unusual terms are losing favor because regulators are urging lenders to do a better job of explaining the risks involved.
NOTE: if you pay interest only, and prices have fallen when it comes time to sell, you may have to come up with cash to pay off your loan. The allure of all types of ARMs is disappearing because they now have interest rates that are barely lower than fixed-rate loans.
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In the February 27, 2006 issue of Forbes, we read that many investors believe that countries with expected rapid growth rates are the best places to invest. However, in 2005, the highest growth rates were registered by China and Venezuela, yet their equity markets were the only ones in the emerging market universe to register losses. One study of 53 national stock markets, going as far back as 105 years, found no statistical link between previous economic growth and investor returns.
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Smart Money, in its March 6, 2006 issue reveals that closing some of your credit card accounts probably will do you more harm than good. If you've had those cards for a long time, they might represent the oldest credit you have. Shutting them down would shorten your credit history and likely lower your credit score. If you're carrying balances on other credit cards, canceling dormant cards could hurt your score further by increasing your ratio of outstanding debt to available credit. For the best results, use each of your cards at least once or twice a year and pay the full balance on time.
Note: Having a high credit score not only enhances your ability to get a mortgage at a good price, it also may help you pay less for things such as auto and homeowner's insurance.
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NOTE: if you pay interest only, and prices have fallen when it comes time to sell, you may have to come up with cash to pay off your loan. The allure of all types of ARMs is disappearing because they now have interest rates that are barely lower than fixed-rate loans.
------------------------------------------
In the February 27, 2006 issue of Forbes, we read that many investors believe that countries with expected rapid growth rates are the best places to invest. However, in 2005, the highest growth rates were registered by China and Venezuela, yet their equity markets were the only ones in the emerging market universe to register losses. One study of 53 national stock markets, going as far back as 105 years, found no statistical link between previous economic growth and investor returns.
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Smart Money, in its March 6, 2006 issue reveals that closing some of your credit card accounts probably will do you more harm than good. If you've had those cards for a long time, they might represent the oldest credit you have. Shutting them down would shorten your credit history and likely lower your credit score. If you're carrying balances on other credit cards, canceling dormant cards could hurt your score further by increasing your ratio of outstanding debt to available credit. For the best results, use each of your cards at least once or twice a year and pay the full balance on time.
Note: Having a high credit score not only enhances your ability to get a mortgage at a good price, it also may help you pay less for things such as auto and homeowner's insurance.
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posted by Bob Moser at
8:35 PM
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