When it comes to saving money, a little know-how, some commitment, and practice all make the task easier as time goes on. Setting your child up with the opportunity to start saving money from a young age is an awesome way to ensure that they are prepared to make smart saving and investing decisions once they start working as an adult in the real world. Assigning paid tasks around the house and using jars as “bank accounts” for saving and spending is an effective foundation to start with. Here, you’ll learn tips, tricks, and techniques that can be implemented as your little one ages to accommodate their learning abilities and maximize their chance of saving success in the future.
Teaching Your Little one to Save Like a Pro
The Benefits Of Opting For A Fixed Rate Mortgage
Claudia Bravo
When it comes to mortgages, there are typically two main kinds: fixed-rate and adjustable-rate sometimes referred to as ARM. While each type of mortgage has its benefits, there are multiple reasons why the 20 or 30 year fixed rate mortgage remains the most popular choice for most people. Here are some of the benefits that a fixed-rate mortgage can provide.
Fixed-Rate Mortgages Provide Predictability You Can Use to Plan for the Future
An adjustable-rate mortgage tends to start at a lower interest rate than the same term fixed-rate mortgage, but then the ARM will go up over time, requiring the home buyer to possibly pay more and more interest as time goes on. With a fixed-rate mortgage, you know exactly how much you are going to pay in interest each and every month from month one until the house is paid off. This predictability is a big reason why fixed-rate mortgages remain so popular in the housing market. You can set your budget not just for the current year but for the next couple of decades, knowing exactly what your interest rate is going to be.
You Won't Have to Deal with a Higher Interest Rate at a Bad Time
ARMs are sometimes seen as desirable at the start, because again, the first few years of an ARM, sometimes as many as seven or 10 years will typically offer a lower interest rate than a traditional fixed-rate mortgage. But as time goes on, your ARM rate will be higher, as was just described. One problem with this scenario is that you don't know where your life is going to be, 10, 15, or 20 years from now. If it turns out you have to pay a much higher interest rate than you can really afford by the time the ARM gets into its second decade, those initial savings during the first five to 10 years aren't going to seem so great in hindsight. You don't want to have the economy go into the tank or lose your job right at the same time that your higher interest rate in an ARM is supposed to kick in.
Talk to a Mortgage Expert
Fixed-rate mortgages are usually the best option for most people. In some cases, if you were going to pay off the entire house during the first five years when the interest rate in an ARM would be lower, that might be to your benefit. But the only way to figure out exactly which type of mortgage is right for you is to talk to a lender today.
Share