By Jack Hough
———
Mark Zuckerberg uses an adjustable-rate mortgage. Should you? Probably not.
When the billionaire Facebook founder refinanced his mortgage with First Republic Bank earlier this year, he scored an adjustable-rate loan that started with a 1.05% rate in May, according to Bloomberg. The rate resets monthly and is equal to the London Interbank Offered Rate, or Libor, plus 0.8 percentage points. The one-month Libor rate was recently 0.25%.
By one measure, the loan is so cheap that Mr. Zuckerberg is making money on it. The inflation rate was 1.7% over the year through May, according to the Labor Department. That’s a modest rate by historical standards, but nonetheless, it’s high enough to suggest that the dollars Mr. Zuckerberg owes are losing value faster than his loan is accruing interest.
A one-month adjustable-rate mortgage is a niche product available only to the wealthy, says Greg McBride, a senior financial analyst at Bankrate.com. But one-year ARMs are common enough that rates for them are tracked by mortgage specialist Freddie Mac. The latest rate is 2.69% — safely above the inflation rate.
So how did Mr. Zuckerberg score such a low rate? By posing near-zero credit risk. First Republic currently pays little to attract deposits. It latest published rate for a three-month certificate of deposit is just 0.05%. With funds that it doesn’t use for conventional lending, it can invest with negligible credit risk by buying, say, U.S. Treasury bills. But three-month ones recently paid just 0.06%.
For Treasury-like safety with a much higher return, the bank can instead make a collateralized loan of just under $6 million to someone who is worth nearly $16 billion, which is what it did. Mr. Zuckerberg may be making money on his loan after inflation, but so is First Republic, considering how cheaply it can raise money from its depositors.
For homebuyers who would have to pay mortgage rates closer to national averages, ARMs don’t hold much appeal at the moment. Their rates have fallen more slowly of late than those of fixed-rate mortgages. The 30-year fixed mortgage rate recently averaged a record low of 3.56%, down nearly a full percentage point from 4.51% a year ago. That 2.69% rate on a one-year ARM, meanwhile, has fallen by only around one-quarter of a percentage point, from 2.95% a year ago.
Also, ARMs save borrowers less cash than they have in the past. The difference between the one-year ARM rate and the 30-year fixed rate is just 0.87 percentage points. Over the past 20 years, it has averaged 1.61 percentage points.
That’s a minimal savings compared with the added risk of a rise in interest rates from current lows during the next 30 years. The only kind of borrower who doesn’t have to worry about such a thing is one who has enough money to pay his loan in full whenever he pleases. It also helps if he, like Mr. Zuckerberg, can negotiate a rate that is safely below the inflation rate. Those who are borrowing because they need the money, meanwhile, should stick with fixed rates.
Did you know that Matrix Mortgage Global will use the following types of income to qualify your clients:
1. 100% Maternity Leave
2. Child Tax Credit
3. Workers Compensation
4. Pension
5. Disability
6. Season work income
7. Investment Income/RRIF Income
8. Rental Income (100%)
We also specialize in;
1st & 2nd mortgages
Refinance and Equity Take Outs
Debt Consolidations and Construction Loans
Commercial Loans
Self Employed and New Immigrant Borrowers
Stopping POWER OF SALES
Paying Off Property/Income tax arrears
Judgments, Garnishments and Liens
Money To Close
Bridge Loans
Bed and Breakfast and Rental Properties
Duplex/Triplex/Fourplex
Commercial Properties
**** Matrix Mortgage Global: PREPAID SECOND MORTGAGE OPTION ****
5yr fixed is 2.90% | 5yr variable is 2.75% | Commercial fixed 4%
For employed and self-employed applicants.
Interest for term of mortgage is capitalized to 85% LTV
Client makes no interest payments for term of mortgage.
Terms 6 and 12 months interest only prepaid.
No minimum beacon score.
No minimum or maximum time for self-employed status, (non-salaried,tips, commissioned sales positions, etc. all qualify)
NOA to prove no personal taxes owing.
No GDS or TDS, payments are interest only for one year
No T1 Generals required
Previous Bankrupts, Consumer Proposals, Credit Counselling all
qualify
Properties up to a four plex, rentals or owner occupied
Mortgages for Self Employed People
Banks do not like to lend to self-employed people because there are some difficulties confirming income and employment
We look beyond self-employment income to assist your client in obtaining a mortgage.
Up to 85% Loan To Value on a 2nd Mortgage
***Below are the second mortgage LTV Limits and fee outlines***
Detached homes in Toronto 95%
Ajax 90%
Oshawa 85%
Condos GTA 85%
Town Homes GTA 90%
Rates range from 12% – 17% with ALL FEES included in the mortgage.
Fully open $500.00 discharge penalty.
If you have anything that you need me to look at please don’t hesitate to give me a call and/or send me an email.
DON’T FORGET TO ASK ABOUT OUR FRANCHISE OPPORTUNITIES!!!
Kind Regards,
Shawn Allen
Broker
Matrix Mortgage Global Lic# 11108
1-800-429-0717 ext 8
sallen@vmmb.net
Vancouver | Calgary | Regina | Toronto | Ottawa | London
By WebOsPublisher
x1 Dialog box with a button to launch a box to start Other windows programs pudn.com
File: x1Download
Add to favorates [
5 4 3 2 1 ]
Directory: Other windows programs
Dev tools: Visual C++
File size: 3504 KB
Update: 2008-12-29
Downloads: 0
Uploader: xuleilei111
Describe: Dialog box with a button to launch a dialog box button to start
File list(time 2004122916~2009020817)(Click to check if it’s the file you need, and recomment it at the bottom):
x1 ..\Andy2.ico ..\AniMagic.ico ..\aoe.ico ..\Atom.ico ..\ball1.ico ..\balloons.ico ..\Barney.ico ..\bebox.ico ..\bebox1.ico ..\Big Boy.ico ..\Big Pencil.ico ..\BigDisk.ico ..\boots.ico ..\bottle.ico ..\bottle01.ico ..\button.ico ..\button01.ico ..\Cabine.ico ..\cable.ico ..\calculat01.ico ..\d1.cpp ..\d1.h ..\d2.cpp ..\d2.h ..\Debug ..\earth+.ico ..\Earth.ico ..\icon21.ico ..\Jupiter.ICO ..\Moon2.ico ..\ReadMe.txt ..\Release ..\res ..\…\x1.rc2 ..\resource.h ..\Rocket.ico ..\Rocket3.ico ..\Saturn Logo.ico ..\Space Shuttle2.ico ..\StdAfx.cpp ..\StdAfx.h ..\Sun.ico ..\Sunny.ico ..\Sunny2.ico ..\X-Mas Tie.ico ..\x1.aps ..\x1.clw ..\x1.cpp ..\x1.dsp ..\x1.dsw ..\x1.h ..\x1.opt ..\x1.plg ..\x1.rc ..\x1Dlg.cpp ..\x1Dlg.h
Please Comment: [Very Good!] [Commonly] [passworded] [Bad Descibe] [Not code/document] [lost file]
[Can't uncompress] [Very bad!] [Note]
Search in more than 1720000 codes/documents:
Other windows programs
Related
The secret pass DB source (Tantra
I ching ten gossip, showing every
VB draw curves, curve automatic d
VB to call the desert to find a c
Access database inventory query c
Simulated GPS data is sent to a s
for vc6.0 development
Applet for hardware breakpoints.
Abstract: VB source code, databas
The VB source code can be used to
Student management system functio
A easy c!
Powerful virus, only to learn and
VB camera motion detection record
A 4-axis motion control card deve
Dual low frequency wavelet transf
the winows vb simple calculator p
Read and write ODD region code in
Retrieve articles specified chara
PB perpetual calendar, incidental
Should very many people the vids
Displaying track of heart behind
200,000 worth of stock analysis o
vc read excel import and export o
MATLAB simulation Kalman filter,
Document division
A similar winhelp procedure, may
A complete configuration software
a simple interactive mapping proc
VC open jpg, bmp jpg file convers
adaboost classifier source code,
discussed a bitmap image and the
CNC control software for C source
A complete set of VC++ USB Video
Transfer function for a group of
FFT spectrum analysis of an examp
in VC++6.0 achieve FFT algorithm
On cognitive radio simulation pro
vc achieve invoice feature that y
This is a TrueType font operation
Mailto US | Copyright Complaints
© 2004-2010 pudn.com
http://id.lenta.ru/profile/108850/
By WebOsPublisher
download Compass Icons,free Compass Icons download,download Compass Icons in SoftItem.com
п»ї
free Compass Icons software download, download Compass Icons ,software download in SoftItem.com
SoftItem.com – Download software start here
download Compass Icons software, free Compass Icons download
Rss | Add Favourite |
Windows
MAC
Linux
Drivers
Buy Software
Search
Home В» Mac В» Others В» Graphics В» Compass Icons
Sections
–
Others
Automator Actions & Workflows
Spotlight Plugins & Utilities
Antivirus
Audio
Business
Communications
Compression Tools
Drivers
DTP/Prepress
Educational
Finance
Font Tools
Graphics
HTML Tools
Internet Utilities
iPod Tools
Math/Scientific
Network/Admin
Screensavers
Security
Utilities
Video
Desktop
Word Processing
System Utilities
Old Software
KVsftpdManager 0.3.5
NCTVideoConverter ActiveX DLL v.2.1
WriteTalk 1.1
Sky Bubbles 1.13
Treeview – JavaScript Tree Menu 4.3
Data::Encrypted 0.07
BestSoft Download Metacafe Video Tool 2.0.1
Acer Altos G540 BIOS P09
microramba 0.3
Law & Order: Dead on the Money Intel810/815 patch
Compass Icons Free Download
Compass Icons Ranking $ Summary
Ranking: Click at the star to rank
User Review: 0 ( times ) Download now
File Size: 6.2 MB OS: Mac OS X 10.0 or later License: Freeware Price: FREE Downloads: Publisher: Susumu Yoshida Homepage: mcdodesign.com/
Compass Icons Description
Compass Icons Tags
icon set icon collection customize desktop icon set collection
Compass Icons Related Software
Loop-Factory Icons 1.0
Software Size: 402 KB
Download now
13 free french Marianne icons 2 2.0
Software Size: 3 MB
Download now
Alien Icons
Software Size: 142 KB
Download now
Sanrio Icons
Software Size: 928 KB
Download now
Evernote Icons
Software Size: 926 KB
Download now
Smilies Icons
Software Size: 6.7 MB
Download now
Nu Lead Drive Icons
Software Size: 7.4 MB
Download now
iCons Drives
Software Size: 8.4 MB
Download now
Free iPhone Toolbar Icons
Software Size: 86 KB
Download now
New York City Icons 1.0
Software Size: 647 KB
Download now
iPhone Sketch Icons 1.0
Software Size: 188 KB
Download now
Dine-O-Matic Icons 1.0
Software Size: 5 MB
Download now
iMac Evolution Icons 1.0
Software Size: 368 KB
Download now
World of Copland Icons 6
Software Size: 136 KB
Download now
Too Red System Icons
Software Size: 110 KB
Download now
Compass Icons Company
Susumu Yoshida
WebSite:mcdodesign.com/ Company Information:
Popular Search
iPhone Lightsaber
phyton development
message stationary
batch decrypt
anchor
sequencer synchronization
actions
draw comic book
flatten Quicktime movie
write adif
Top Shareware Download
Dig McDug 3.0
SQuad.part32.rar 2002-06-28
App::SimpleScan::Plugin::Forget 1.02
ws03x64.zip 2006-04-03
MP3 Play Lyrics 1.0
BestSoft Download Metacafe Video Tool 2.0.1
Easy Backup 0.1
HP Pavilion s7600e Multimedia Keyboard Driver
Copy (9) of AIO_CDA_Full_Network_ita.exe 2007-02-02
Adobe Captivate Reviewer 1.0
Top Free Download
cats2procmailrc 2.1
marvell_lan_9.14.4.3_vista_x86.zip 9.14.4.3
Gigabyte GA 8IPE775 Pro Bios F5
VM Additions S3 Trio32/64 13.211.0.0
Dell Latitude D400 Sony DW D56A Slim DVDRW Firmware A04
Adobe Flash Media Interactive Server 3.5
MSI GX600 08 Modem Driver 2.1.77
PY3D1-pyode 1.0
Fun Visual Basic Projects 1.0
ShareTheMusic Pack 0.9.9
PSP software
Limewire avg free MathType BitTorren kazaa lite LimeWire Ares BearShare eMule uTorrent
Internet software
Opera Webcam FlashGet Flash player PDF Converter Nod32 YouTube Downloader Ipod Converter Azureus Office 2007
Web Autoring
Adobe photoshop Corel deaw Dreamweaver Fireworks Turbo c++ SQL Server Adobe Illustrator Microsoft.NET MYSQL 3DX MAX
System Utilities
PowerISO Firefox3.0 Microsoft Windows WinRAR Winzip deamon CCleaner GHOST VPN Windowns 7
Network tools
Noton antivirus 2009 Yahoo messenger gtalk kaspersky pidgin HiJackThis cd burner dc++ Avi player
Audio & video
MP4 Player DVD player dvd repper video converter winamp adobe flash plyaer adobe reader windows media player FL studio Audio editor
ABCDEFGHIJKLMNOPQRSTUVWXYZ
SoftItem.com-Download software start here!
2009-2011 SoftItem.com All rights reserved. Privacy policy | Advertise With Us | Submit Software
ARMs can be risky as soon as rates start to rise but when rates are falling your rate automatically falls with it (as opposed to a fixed loan where you would have to do a refi (and pay refi fees) to take advantage of falling rates every time the rates dropped) Anyone know if there’s a prepayment penalty on his loan?
all that I can say after reading these comments is “duh”!