Online resource a lifeline for childhood cancer survivors Houston Chronicle, United States - Alexander, a childhood cancer survivor, figured he was best served by doctors who knew his history and risks. He'd call his Houston general practitioner for ...
Pregnant women are at special risk and should get flu shot Kentucky.com, KY - ... women are unaware that pregnancy places them at high risk for suffering complications from the flu. Both the Centers for Disease Control and Prevention ...
Common's 'Universal Mind Control': more of the same Chicago Tribune, United States - It was one of the biggest commercial flops of his career but it remains a fascinating left turn, an artistic risk rather than a cosmetic makeover. ...
Check your risk of exposure to Carbon monozide poisoning Steuben Courier, NY - Dec 5, 2008 The Centers for Disease Control estimates that carbon monoxide poisoning claims nearly 500 lives and causes more than 15000 visits to hospital emergency ...
Hidden health risks of the holiday season CTV.ca, Canada - "Rushing through the defrosting process by putting the turkey in hot water or leaving it on the counter is incredibly unsafe and can increase the risk of ...
Structure mistakes add to misgivings Wilkes Barre Times-Leader, PA - His son had sold the house on a 0.32-acre for $134021 in May 2007. The new owners, Raymond and Marla Wismer, received an assessed value of $190000 ...
Drought Situation Has 'Deepened' In Greene County Greeneville Sun, TN - Aug 1, 2008 This amount includes 0.32 inches of rain on July 31, according to a spokesman at the center. At Tri-Cities Regional Airport, according to the weather ...
Online Resources Posts Second Quarter 2008 Results WELT ONLINE, Germany - Jul 29, 2008 Online Resources Corporation (Nasdaq:ORCC), a leading provider of web-based financial services, today reported financial and operating results for the three ...ORCC
June 2008 Quarterly Activities and Cashflow Report Sydney Morning Herald, Australia - Jul 21, 2008 ... 0.21% Cu & 0.17% Ni from 137.00m including: 12.00m @ 3.39g/t Pt+Pd, 0.32% Cu & 0.22% Ni from 145.00m The ratio of Pt to Pd in these intersections is ...ASX:MMB
Digital River Announces Second Quarter Financial Results MarketWatch - Jul 30, 2008 A webcast replay of the call will be archived on Digital River's corporate Web site. Digital River, Inc., a leading provider of global e-commerce solutions, ...DRIV
Text Analytics Basics, Part 1 B-EYE-Network, CO - Jul 29, 2008 The Standard & Poor's 500 index fell 1.44, or 0.11 percent, to 1263.85, and the Nasdaq composite gained 6.84, or 0.32 percent, to 2162.78. ...
Source: Google News
[PDF]The SPIRIT collection: an overview of a large web collection - H Joho, M Sanderson - SIGIR Forum, 2004 - itri.brighton.ac.uk ... cn 0.32 fi 0.52 uiuc.edu 0.22 com.br 0.45 ... The European domains consist of over 9.6
million web pages which is approximately 10.24% of the entire collection. ...
Reliability of Web-based teledermatology consultations - MO Oztas, E Calikoglu, K Baz, A Birol, M Onder, T … - Journal of Telemedicine and Telecare, 2004 - ingentaconnect.com ... 0.22?0.32). Seventy-seven per cent of the patients were correctly diagnosed by at
least two dermatologists when clinical information was provided. A Web- ...
Graphical Evolution of the Arnold Web: From Order to Chaos - C Froeschle, M Guzzo, E Lega - Science, 2000 - sciencemag.org ... 0 1 0.5 0.5 1.5 0.32 0.34 0.36 0.38 0.4 0 2.9 3.6 3.8 4 3.1 3 1 3.5 3.5 3 4 3 Fig.
2. Evolution of the Arnold web for increasing values of the perturbation ...
[PDF]On Mining Web Access Logs - A Joshi, R Krishnapuram - ACM SIGMOD Workshop on Research Issues in Data Mining and …, 2000 - ebiquity.umbc.edu Page 1. On Mining Web Access Logs ... The proliferation of information on the world wide web has made the personalization of this infor- mation space a necessity. ...
Does ?authority? mean quality? predicting expert quality ratings of Web documents - B Amento, L Terveen, W Hill - Proceedings of the 23rd annual international ACM SIGIR …, 2000 - portal.acm.org ... a number of link and content-based algorithms using a dataset of web documents rated ...
and precision at 10 is about 0.55; this is in a dataset where 0.32 of all ...
- HR Connolly - US Patent 4,136,501, 1979 - Google Patents ... length of line DE to the length of line AE, and this is axially back and
forth for traverse winding of the web0.32/1 = 0.32 or 32%. ...
[PDF]Phylogenetic constraints and adaptation explain food-web structure - MF Cattin, LF Bersier, C Banasek-Richter, R … - Nature, 2004 - unifr.ch ... by one order of magnitude?in the prediction of these standard food-web descriptors ...
B 0.09 [0.04] 0.10 0.10 [0.13] 0.08 0.17 [0.32] 0.16 0.26 [0.10] 0.26 0.18 ... -
Regulation of Lake Primary Productivity by Food Web Structure - SR Carpenter, JF Kitchell, JR Hodgson, PA Cochran, … - Ecology, 1987 - JSTOR ... December 1987 LAKE PRODUCTIVITY AND FOOD WEB STRUCTURE 1867 TABLE 2. Index of relative ...
0.18 0.47 1985 0.59 1 0.76 0.77 0.30 0.52 Peter 1984 0.56 0.32 1 0.71 ...
Source: Google Scholar
How do I control the risk of ‘payment shock’?
Flexible-payment adjustable-rate mortgages (FPARMs) are for borrowers who need low payments in the early years. The minimum initial payment is calculated at the interest rate in month 1, which can be as low as 1.25 percent, and rises by 7.5 percent a year.While the interest rate jumps in month 2, the initial payment holds for the year. In the four years that follow, each minimum is 7.5 percent higher than the minimum in the preceding year. The rate in month 1 thus determines the minimum payments for the first five years.Typically the payment will not cover the interest after month 1, resulting in an increase in the loan balance for some years. Under favorable conditions, the 7.5 percent increases in minimum payment over the first five years will suffice to pay off the larger balance and no larger payment increases will be needed. But there are no guarantees. If the increase in loan balance is too large, the borrower will receive a nasty surprise at the end of year 5: "payment shock." In FPARM contracts, the payment is "recast" in month 61 to be fully amortizing over the remaining 300 months, regardless of whether or not the required payment increase exceeds 7.5 percent. In fact, payment shock could happen before the end of the fifth year if the loan balance reached a negative amortization maximum – a ceiling on how large the balance can become.
The likelihood of payment shock for any borrower making the minimum payments depends primarily on three factors:
A rising interest rate index increases the likelihood of payment shock.
A larger margin – the margin is added to the rate index to determine the rate paid by the borrower – increases the likelihood of shock.
A lower rate in month 1, because it reduces the minimum payments in the first five years, increases the likelihood of shock.
Borrowers and lenders have no control over changes in the interest rate index, but the margin and the interest rate in month 1 are set in the FPARM contract.
In assessing the risk of payment shock, I looked at how payments would change on a 30-year FPARM that used the COFI index with a value of 1.909 percent at the beginning. I assumed two interest rate scenarios, one stable, the other rising moderately; start rates of 1.25 percent, 1.95 percent and 2.95 percent; and margins of 2 percent, 2.75 percent and 4 percent. The full results are shown in the Web version of this article.
I was surprised to find that even with a stable interest rate scenario, borrowers who took the lowest start rate or paid the highest margin were heavily exposed. A borrower with the lowest start rate of 1.25 percent and the highest margin of 4 percent would face a payment increase of 53.6 percent in month 61. Raising the start rate to 1.95 percent and 2.95 percent would reduce the increase to 36 percent and 14.6 percent, respectively. Lenders should not be offering combinations that result in payment shock in a stable rate scenario. Start rates of 1.25 percent should be limited to borrowers who command a margin of 2 percent, while borrowers who pay 4 percent or more should receive start rates no lower than 2.95 percent.
Any realistic assessment of payment shock exposure must consider the possibility that interest rates will increase. The scenario I used simply reversed the recent decline in COFI. From a high of 5.617 percent in December 2000, COFI dropped to an all-time low of 1.909 percent in October 2003. This decline of 3.708 percentage points took 34 months. To make the computations a bit easier, I cut the increase to .1 percent a month for 33 months, or by 3.3 percentage points in total. This modest increase is very far from being a "worst case."
The results are scary. At the highest start rate of 2.95 percent and the lowest margin of 2 percent, the borrower would be hit with a payment increase of 31.6 percent in month 61. That's the best outcome I found. At the lowest start rate and the largest margin, the payment would jump by 139.6 percent in month 36! Other results fell between these limits.
Bottom line: don't be dazzled by a low initial rate that gives you the lowest initial payment. It also gives you the largest exposure to future payment shock. In shopping, focus on the margin first, then the maximum rate, then points and fixed-dollar fees. FPARMs are relatively easy to shop because, unlike other mortgages, which are repriced every day, FPARMs are repriced only occasionally. This means that borrowers can afford to be deliberate in canvassing the market for the best deal.
