If you are planning to buy a home for the first time, it is essential for you to make things clear, with regards to types of home mortgage, mortgage affordability, and the costs associated. This is extremely important for you or else, you may have to face numerous problems at the later stage. For, if you take out a mortgage which may not serve all of your requiems, and which you cannot afford, you can even end up losing your home, and thus hurting your credit too. Other than the affordability, another very important thing which you will be require to consider is if you should take out a fixed rate mortgage or an adjustable rate one. In order to decide this, you will be required to understand the difference in between the two types of mortgages.

FRM and ARM – Choosing one

All kinds of products, tool and services and even individuals are supposed to have both the positives and the negatives. So, in case of FRM or the fixed rate mortgage and the ARM or the adjustable rate mortgage too, the situation is the same. You will be required to consider the advantages and disadvantages of both the types of mortgages.
Fixed rate mortgages

Advantages of FRMs

1. The interest rates and the payments stay the same
2. Stability helps with better and easier budgeting
3. It is much easier for you to understand as to how and when the payments are to be done, with regards to the mortgage

Disadvantages of FRMs

1. In order to enjoy the benefits of the lowering interest rates, you will be required to refinance your mortgage
2. In case the interest rate at which the mortgage was licked is too high, you can have problems
3. The FRMS cannot be customized just as the Arms can be done, as per the lenders’ and the customer's requirements

Adjustable rate mortgages

Advantages of ARMs

1. If you are low on affordability, this can be advantageous as the interest rate and thus the payments remain low during the beginning of the loan term
2. You aren’t required to refinance the mortgage in order to enjoy the lower rates
3. This loan type helps you with both investing and saving more money.

Disadvantages of ARMs

1. The interest rates and the payments may increase significantly as the term of the loan passes by
2. With the change in the annual cap in the mortgage of 2 percent and lifetime cap on the mortgage of 6 percent can result in an increase in the rate from an already high of 6 percent to that of 12 percent

So, these are the advantages and disadvantages of the two types of mortgages which you will be required to consider, in order to be able to decide which one you should take out, if you are going to buy a home for the first time.
Source: http://www.mortgagefit.com/

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An energetic Mitt Romney launched a series of attacks against President Obama here Wednesday night, calling into question the president’s record on the economy, health care and the deficit, and arguing that he would take the country in a fundamentally different direction.

Obama sought to parry Romney’s criticisms, charging that his presidential rival favors a top-down approach to the economy that would reward the wealthiest Americans at the expense of the middle class and that the details of the Republican’s proposals don’t add up. But he found himself on the defensive repeatedly during their first debate, held at the University of Denver.

See here full story : http://www.washingtonpost.com/politics/decision2012/romney-obama-debate-could-be-pivot-point-in-campaign/2012/10/03/74fad02c-0d98-11e2-bd1a-b868e65d57eb_story.html