Beware of Balloon Mortgages This is a mortgage where the one payment, usually the last one is bigger than any other payments. Balloon Mortgages are usually set up like a regular 30 year mortgage except that at some date in the future, a large balloon payment will be due. The balloon payment is typically the entire balance of the mortgage. The due date of the balloon payment … [Read more...]
Pros and Cons of Interest Only Mortgage
Do You Know the Pros and Cons of Interest Only Mortgage? Has any lender ever told you the Interest Only Mortgage was like a double-edged sword? It can help you achieve your dream of owning a home more easily, but it also can create a financial hardship for those who don’t fully understand what’s involved. In the attempt to lure potential homebuyers, the lenders have come up … [Read more...]
What are “interest only” mortgages?
Basic Concept What are "interest only" mortgages? Mortgages are considered to be “interest only” if your monthly payment does not cover the entire loan payment due, that is the mortgage interest and a payment to decrease the loan principal. Every month you are paying the interest only and this means that the loan is literally not going away. The purpose of setting up an … [Read more...]
Exit Strategies for Public Companies
Exit Strategies for Public Companies There are three ways that public company insiders can convert their equity into cash. 1. They can sell their stock to the public. This is the goal of the insiders in most OTCBB and Nasdaq Small Cap Companies. It's summarized in the axiom "Pump & Dump." The stock is promoted as the insiders sell their shares into the public … [Read more...]
Ten Short Selling Strategies
Short Selling Strategies here are dozens of ways to sell short a stock. 1. Traditional Short Sale: Borrow the stock against a fifty percent margin. This is the only type of short sale that can be squeezed when the share price moves up because the short seller must add money to their margin account. 2. A Market Maker Short Sale: U. S. Market Makers are not required to … [Read more...]