If you had asked me two years before my wife and I began our home catering business whether I would consider being my own boss, I would have laughed out loud and scoffed at the idea.
The company I worked for seemed to be doing well and I was recognized for the “creative genius” that I was. I was contented as a Web Developer in a multi-national corporation, lost in my own world in cyberspace. The pay was alright and there wasn’t any reason to think of other means of income. Looking back, I realized that I was in a comfort zone and being there shut my eyes to all the opportunities that were knocking at my door. Things were about to change though.
The signs were classic of a company in trouble. Emails instructing us to take cost-reduction seriously, profit sharing withheld, no year-end bonus, a freeze on all pay rises. Then, it was crunch-time. There was talk of “staff re-designation”. One year later, it became a full blown staff elimination exercise. No retrenchment benefits, no nothing.
My wife didn’t really think I was serious about the company being in trouble until I started having the “classic” symptoms of Middle-Aged-Man-With-Job-Threatened-Syndrome. I couldn’t eat or sleep worrying about how we would make ends meet on my wife’s salary as a kindergarten teacher, which wasn’t much. The stress and fear were taking its toll on my health.
It became clear that there was no way the company would keep me for more than a year and with job applicants half my age working for even lesser pay, my wife and I did some serious talking. We came up with a couple of ideas we thought we could do to earn extra cash and prepare us for the tough times ahead. We eventually decided to start our own home catering business, cooking and delivering dinner to people who were either too busy, didn’t have the time or the liking to cook.
Armed only with the confidence that my wife was a great cook, we started. Our first obstacle turned out to be our minds. We were so caught up in our comfort zone for so long that every little decision seemed like a monumental task. At the back of our minds, we didn’t want to be in the position we were in. We struggled with the fear of change and the unknown, but we carried on, telling ourselves that even if I did get another job, it was only a matter of time before the same cycle would repeat itself. We HAD to take this step and take control of our lives and our earning power.
We made countless mistakes in our first six months, but let me tell you… when we got our first customer, I felt such relief I slept like a baby that night. It was my first night of peaceful sleep in a year. It wasn’t the sixty dollars profit that we made. It was the fact that we had finally started to chart our own destiny, free from the whims and fancies of corporate management.
A year into our business, the inevitable happened. I was approached by my company to discuss “re-designation”. I told them that I knew what they meant and I was prepared to leave. I was the last one in my division to finally say goodbye. Thankfully, my wife and I saw this coming a year ago and readied ourselves for it, so when the time came, we just let go and set our sights on our home catering business.
It’s been almost two years now and we’ve gone through some really trying times learning the ropes of managing a home business. We’ve had to adjust our attitudes and daily lives but we’re doing fine, and our financial situation has gone from hopeless to healthy. What started out as a way to earn extra money has turned out to be our main source of income.
I hope my sharing gives you the encouragement and inspiration to NOT LOSE HOPE. I wouldn’t recommend waiting until you were in trouble before you considered starting your own home business, but maybe like usArticle Search, it takes a storm to help us break free of our comfort zone.
ABOUT THE AUTHOR
Andrew Shim is the owner and editor of PositiveMoneyIdeas.com a website which offers FREE IDEAS for those interested in starting their own freelance or home based business and PositiveTones.com , a FREE resource website for Positive Living. He and his wife run a successful home catering business. When not up to his eyeballs in veggie, meat, gravy and being official taster for his catering business, he manages his websites, writes for numerous other sites and magazines and fools around with his kids.
Sunday, May 13, 2007
Home Buyer and House Plan Terms and Definitions
When you start shopping for a new home, you may encounter some words and terms with which you are unfamiliar. The following glossary will help you to be a better informed shopper.
Adjustable Rate Mortgage (ARM) - A loan whose interest rate is adjusted according to movements in the financial market.
Amortization - A payment plan by which a borrower reduces a debt gradually through monthly payments of principal and interest.
Annual Percentage Rate (APR) - The annual cost off credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.
Appraisal - An evaluation to determine what a piece of property would sell for in the marketplace.
Appreciation - The increase in the value of a property.
Assessment - A tax levied on a property or a value placed on the worth of property by a taxing authority.
Assumption - A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home instead of getting a new loan.
Balloon - A loan which has a series of monthly payments (often for 5 years or less) with the remaining balance due in a large lump sum payment at the end.
Binder - A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller.
Buydown - A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan.
Cap - A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.
Certificate of Occupancy - A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.
Closing - A meeting to sign documents which transfer property from a seller to a buyer. (Also called settlement)
Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring real estate title.
Conditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision.
Condominium - A home in a multi-unit complex; each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc.
Conventional Loan - A mortgage loan not insured by a government agency (such as FHA or VA).
Convertibility - The ability to change a loan from an adjustable rate schedule to a fixed rate schedule.
Cooperative - A form of ownership in a multi-unit complex; the purchasers own shares of the entire complex rather than owning individual units.
Credit Rating - A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.
Default - A breach of a mortgage contract (such as not making monthly payments).
Density - The number of homes built on a particular acre of land. Allowable densities are usually determined by local jurisdictions.
Downpayment - The difference between the sales price and the mortgage amount on a home. The downpayment is usually paid at closing.
Due-on-Sale - A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property. A mortgage with a due-on-sale clause is not assumable.
Earnest Money - A sum paid to the seller to show that a potential purchaser is serious about buying.
Easement - Right-of-way granted to a person or company authorizing access to the owner’s land; for example, a utility company may be grated an easement to install pipes or wires. An owner may voluntarily grant an easement, or in some cases, be compelled to grant one by a local jurisdiction.
Equity - The difference between the value of a home and what is owed on it.
Escrow - The handling of funds or documents by a third party on behalf of the buyer and/or seller.
Federal Housing Administration (FHA) - A federal agency which insures mortgages that have lower downpayment requirements than conventional loans.
Fixed Rate Mortgage - A mortgage whose interest rate remains constant over the life of the loan. The payments are not necessarily level. (See Graduated Payment Mortgage and Growing Equity Mortgage).
Fixed Schedule Mortgage - A mortgage whose payment schedule for the life of the loan is established at closing. The payments and interest rate are not necessarily level.
Graduated Payment Mortgage (GPM) - A fixed-rate, fixed-schedule loan which starts with lower payments than a level payment loan; the payments rise annually over the first 5 to 10 years and then remain constant for the remainder of the loan. GPMs involve negative amortization.
Growing Equity Mortgage (Rapid Payoff Mortgage) - A fixed-rate, fixed-schedule loan which starts with the same payments as a level payment loan; the payments rise annually, with the entire increase being used to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less.
Hazard Insurance - Protection against damage caused by fire, windstorm, or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Housing Finance Agency - A state agency which offers a limited amount of below-market-rate home financing for low-and moderate-income households.
Index - The interest rate or adjustment standard which determines the changes in monthly payments for an adjustable rate loan.
Infrastructure - The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems
Interest - The cost paid to a lender for the use of borrowed money.
Joint Tenancy - A form of ownership by which the tenants own a property equally. If one dies, the other would automatically inherit the entire property.
Level Payment Mortgage - A mortgage whose payments are identical for each month over the life of the loan.
Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer finds a loan.
Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying the loan amount, length of time and conditions.
Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, then sells the loans to investors.
Mortgagee - The lender who makes a mortgage loan.
Mortgage Loan - A contract in which the borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep the home insured, to pay all taxes, and to keep the property in good condition.
Mortgage Origination Fee - A charge by a lender for the work involved in preparing and servicing a mortgage application (usually 1 percent of the loan amount).
Negative Amortization - An increase in the outstanding balance of a loan when a monthly payment is not large enough to cover all of the interest due.
Note - A formal document showing the existence of a debt and stating the terms of repayment.
PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).
Point - A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.
Prepayment - Payment of all or part of a debt prior to its maturity.
Principal - The amount borrowed in a loan, excluding interest and other charges.
Property Survey - A survey to determine the boundaries of your property. The cost will depend on the complexity of the survey.
Rapid Payoff Mortgage - (See Growing Equity Mortgage).
Recording Fee - A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.
Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.
R-Value - The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value.
Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed-upon terms.
Settlement - (See Closing).
Shared Appreciation Mortgage - A loan in which partners agree to share specified portions of the downpayment, monthly payment, and appreciation.
Tenancy in Common - A form of ownership in which the tenants own separate but equal parts. To inherit the property, a surviving tenant would either have to be mentioned in the will or, in the absence of a will, be eligible through state inheritance laws.
Title - Evidence (usually in the form of a certificate or deed) of a person’s legal right to ownership of a property.
Transfer Taxes - Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdictions.
Veterans Administration (VA) - A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.
Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.
Warranty - A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.
Zoning - Regulations established by local governments regarding the location, heightFeature Articles, and use for any given piece of property within a specific area.
Visit us online at:
http://www.houseplancentral.com
ABOUT THE AUTHOR
Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com
and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.
Adjustable Rate Mortgage (ARM) - A loan whose interest rate is adjusted according to movements in the financial market.
Amortization - A payment plan by which a borrower reduces a debt gradually through monthly payments of principal and interest.
Annual Percentage Rate (APR) - The annual cost off credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.
Appraisal - An evaluation to determine what a piece of property would sell for in the marketplace.
Appreciation - The increase in the value of a property.
Assessment - A tax levied on a property or a value placed on the worth of property by a taxing authority.
Assumption - A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home instead of getting a new loan.
Balloon - A loan which has a series of monthly payments (often for 5 years or less) with the remaining balance due in a large lump sum payment at the end.
Binder - A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller.
Buydown - A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan.
Cap - A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.
Certificate of Occupancy - A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.
Closing - A meeting to sign documents which transfer property from a seller to a buyer. (Also called settlement)
Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring real estate title.
Conditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision.
Condominium - A home in a multi-unit complex; each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc.
Conventional Loan - A mortgage loan not insured by a government agency (such as FHA or VA).
Convertibility - The ability to change a loan from an adjustable rate schedule to a fixed rate schedule.
Cooperative - A form of ownership in a multi-unit complex; the purchasers own shares of the entire complex rather than owning individual units.
Credit Rating - A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.
Default - A breach of a mortgage contract (such as not making monthly payments).
Density - The number of homes built on a particular acre of land. Allowable densities are usually determined by local jurisdictions.
Downpayment - The difference between the sales price and the mortgage amount on a home. The downpayment is usually paid at closing.
Due-on-Sale - A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property. A mortgage with a due-on-sale clause is not assumable.
Earnest Money - A sum paid to the seller to show that a potential purchaser is serious about buying.
Easement - Right-of-way granted to a person or company authorizing access to the owner’s land; for example, a utility company may be grated an easement to install pipes or wires. An owner may voluntarily grant an easement, or in some cases, be compelled to grant one by a local jurisdiction.
Equity - The difference between the value of a home and what is owed on it.
Escrow - The handling of funds or documents by a third party on behalf of the buyer and/or seller.
Federal Housing Administration (FHA) - A federal agency which insures mortgages that have lower downpayment requirements than conventional loans.
Fixed Rate Mortgage - A mortgage whose interest rate remains constant over the life of the loan. The payments are not necessarily level. (See Graduated Payment Mortgage and Growing Equity Mortgage).
Fixed Schedule Mortgage - A mortgage whose payment schedule for the life of the loan is established at closing. The payments and interest rate are not necessarily level.
Graduated Payment Mortgage (GPM) - A fixed-rate, fixed-schedule loan which starts with lower payments than a level payment loan; the payments rise annually over the first 5 to 10 years and then remain constant for the remainder of the loan. GPMs involve negative amortization.
Growing Equity Mortgage (Rapid Payoff Mortgage) - A fixed-rate, fixed-schedule loan which starts with the same payments as a level payment loan; the payments rise annually, with the entire increase being used to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less.
Hazard Insurance - Protection against damage caused by fire, windstorm, or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Housing Finance Agency - A state agency which offers a limited amount of below-market-rate home financing for low-and moderate-income households.
Index - The interest rate or adjustment standard which determines the changes in monthly payments for an adjustable rate loan.
Infrastructure - The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems
Interest - The cost paid to a lender for the use of borrowed money.
Joint Tenancy - A form of ownership by which the tenants own a property equally. If one dies, the other would automatically inherit the entire property.
Level Payment Mortgage - A mortgage whose payments are identical for each month over the life of the loan.
Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer finds a loan.
Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying the loan amount, length of time and conditions.
Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, then sells the loans to investors.
Mortgagee - The lender who makes a mortgage loan.
Mortgage Loan - A contract in which the borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep the home insured, to pay all taxes, and to keep the property in good condition.
Mortgage Origination Fee - A charge by a lender for the work involved in preparing and servicing a mortgage application (usually 1 percent of the loan amount).
Negative Amortization - An increase in the outstanding balance of a loan when a monthly payment is not large enough to cover all of the interest due.
Note - A formal document showing the existence of a debt and stating the terms of repayment.
PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).
Point - A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.
Prepayment - Payment of all or part of a debt prior to its maturity.
Principal - The amount borrowed in a loan, excluding interest and other charges.
Property Survey - A survey to determine the boundaries of your property. The cost will depend on the complexity of the survey.
Rapid Payoff Mortgage - (See Growing Equity Mortgage).
Recording Fee - A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.
Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.
R-Value - The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value.
Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed-upon terms.
Settlement - (See Closing).
Shared Appreciation Mortgage - A loan in which partners agree to share specified portions of the downpayment, monthly payment, and appreciation.
Tenancy in Common - A form of ownership in which the tenants own separate but equal parts. To inherit the property, a surviving tenant would either have to be mentioned in the will or, in the absence of a will, be eligible through state inheritance laws.
Title - Evidence (usually in the form of a certificate or deed) of a person’s legal right to ownership of a property.
Transfer Taxes - Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdictions.
Veterans Administration (VA) - A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.
Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.
Warranty - A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.
Zoning - Regulations established by local governments regarding the location, heightFeature Articles, and use for any given piece of property within a specific area.
Visit us online at:
http://www.houseplancentral.com
ABOUT THE AUTHOR
Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com
and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.
Home Buyer and House Plan Terms and Definitions
When you start shopping for a new home, you may encounter some words and terms with which you are unfamiliar. The following glossary will help you to be a better informed shopper.
Adjustable Rate Mortgage (ARM) - A loan whose interest rate is adjusted according to movements in the financial market.
Amortization - A payment plan by which a borrower reduces a debt gradually through monthly payments of principal and interest.
Annual Percentage Rate (APR) - The annual cost off credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.
Appraisal - An evaluation to determine what a piece of property would sell for in the marketplace.
Appreciation - The increase in the value of a property.
Assessment - A tax levied on a property or a value placed on the worth of property by a taxing authority.
Assumption - A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home instead of getting a new loan.
Balloon - A loan which has a series of monthly payments (often for 5 years or less) with the remaining balance due in a large lump sum payment at the end.
Binder - A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller.
Buydown - A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan.
Cap - A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.
Certificate of Occupancy - A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.
Closing - A meeting to sign documents which transfer property from a seller to a buyer. (Also called settlement)
Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring real estate title.
Conditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision.
Condominium - A home in a multi-unit complex; each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc.
Conventional Loan - A mortgage loan not insured by a government agency (such as FHA or VA).
Convertibility - The ability to change a loan from an adjustable rate schedule to a fixed rate schedule.
Cooperative - A form of ownership in a multi-unit complex; the purchasers own shares of the entire complex rather than owning individual units.
Credit Rating - A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.
Default - A breach of a mortgage contract (such as not making monthly payments).
Density - The number of homes built on a particular acre of land. Allowable densities are usually determined by local jurisdictions.
Downpayment - The difference between the sales price and the mortgage amount on a home. The downpayment is usually paid at closing.
Due-on-Sale - A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property. A mortgage with a due-on-sale clause is not assumable.
Earnest Money - A sum paid to the seller to show that a potential purchaser is serious about buying.
Easement - Right-of-way granted to a person or company authorizing access to the owner’s land; for example, a utility company may be grated an easement to install pipes or wires. An owner may voluntarily grant an easement, or in some cases, be compelled to grant one by a local jurisdiction.
Equity - The difference between the value of a home and what is owed on it.
Escrow - The handling of funds or documents by a third party on behalf of the buyer and/or seller.
Federal Housing Administration (FHA) - A federal agency which insures mortgages that have lower downpayment requirements than conventional loans.
Fixed Rate Mortgage - A mortgage whose interest rate remains constant over the life of the loan. The payments are not necessarily level. (See Graduated Payment Mortgage and Growing Equity Mortgage).
Fixed Schedule Mortgage - A mortgage whose payment schedule for the life of the loan is established at closing. The payments and interest rate are not necessarily level.
Graduated Payment Mortgage (GPM) - A fixed-rate, fixed-schedule loan which starts with lower payments than a level payment loan; the payments rise annually over the first 5 to 10 years and then remain constant for the remainder of the loan. GPMs involve negative amortization.
Growing Equity Mortgage (Rapid Payoff Mortgage) - A fixed-rate, fixed-schedule loan which starts with the same payments as a level payment loan; the payments rise annually, with the entire increase being used to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less.
Hazard Insurance - Protection against damage caused by fire, windstorm, or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Housing Finance Agency - A state agency which offers a limited amount of below-market-rate home financing for low-and moderate-income households.
Index - The interest rate or adjustment standard which determines the changes in monthly payments for an adjustable rate loan.
Infrastructure - The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems
Interest - The cost paid to a lender for the use of borrowed money.
Joint Tenancy - A form of ownership by which the tenants own a property equally. If one dies, the other would automatically inherit the entire property.
Level Payment Mortgage - A mortgage whose payments are identical for each month over the life of the loan.
Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer finds a loan.
Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying the loan amount, length of time and conditions.
Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, then sells the loans to investors.
Mortgagee - The lender who makes a mortgage loan.
Mortgage Loan - A contract in which the borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep the home insured, to pay all taxes, and to keep the property in good condition.
Mortgage Origination Fee - A charge by a lender for the work involved in preparing and servicing a mortgage application (usually 1 percent of the loan amount).
Negative Amortization - An increase in the outstanding balance of a loan when a monthly payment is not large enough to cover all of the interest due.
Note - A formal document showing the existence of a debt and stating the terms of repayment.
PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).
Point - A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.
Prepayment - Payment of all or part of a debt prior to its maturity.
Principal - The amount borrowed in a loan, excluding interest and other charges.
Property Survey - A survey to determine the boundaries of your property. The cost will depend on the complexity of the survey.
Rapid Payoff Mortgage - (See Growing Equity Mortgage).
Recording Fee - A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.
Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.
R-Value - The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value.
Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed-upon terms.
Settlement - (See Closing).
Shared Appreciation Mortgage - A loan in which partners agree to share specified portions of the downpayment, monthly payment, and appreciation.
Tenancy in Common - A form of ownership in which the tenants own separate but equal parts. To inherit the property, a surviving tenant would either have to be mentioned in the will or, in the absence of a will, be eligible through state inheritance laws.
Title - Evidence (usually in the form of a certificate or deed) of a person’s legal right to ownership of a property.
Transfer Taxes - Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdictions.
Veterans Administration (VA) - A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.
Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.
Warranty - A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.
Zoning - Regulations established by local governments regarding the location, heightFeature Articles, and use for any given piece of property within a specific area.
Visit us online at:
http://www.houseplancentral.com
ABOUT THE AUTHOR
Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com
and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.
Adjustable Rate Mortgage (ARM) - A loan whose interest rate is adjusted according to movements in the financial market.
Amortization - A payment plan by which a borrower reduces a debt gradually through monthly payments of principal and interest.
Annual Percentage Rate (APR) - The annual cost off credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.
Appraisal - An evaluation to determine what a piece of property would sell for in the marketplace.
Appreciation - The increase in the value of a property.
Assessment - A tax levied on a property or a value placed on the worth of property by a taxing authority.
Assumption - A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home instead of getting a new loan.
Balloon - A loan which has a series of monthly payments (often for 5 years or less) with the remaining balance due in a large lump sum payment at the end.
Binder - A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller.
Buydown - A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan.
Cap - A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.
Certificate of Occupancy - A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations.
Closing - A meeting to sign documents which transfer property from a seller to a buyer. (Also called settlement)
Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring real estate title.
Conditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision.
Condominium - A home in a multi-unit complex; each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc.
Conventional Loan - A mortgage loan not insured by a government agency (such as FHA or VA).
Convertibility - The ability to change a loan from an adjustable rate schedule to a fixed rate schedule.
Cooperative - A form of ownership in a multi-unit complex; the purchasers own shares of the entire complex rather than owning individual units.
Credit Rating - A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.
Default - A breach of a mortgage contract (such as not making monthly payments).
Density - The number of homes built on a particular acre of land. Allowable densities are usually determined by local jurisdictions.
Downpayment - The difference between the sales price and the mortgage amount on a home. The downpayment is usually paid at closing.
Due-on-Sale - A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property. A mortgage with a due-on-sale clause is not assumable.
Earnest Money - A sum paid to the seller to show that a potential purchaser is serious about buying.
Easement - Right-of-way granted to a person or company authorizing access to the owner’s land; for example, a utility company may be grated an easement to install pipes or wires. An owner may voluntarily grant an easement, or in some cases, be compelled to grant one by a local jurisdiction.
Equity - The difference between the value of a home and what is owed on it.
Escrow - The handling of funds or documents by a third party on behalf of the buyer and/or seller.
Federal Housing Administration (FHA) - A federal agency which insures mortgages that have lower downpayment requirements than conventional loans.
Fixed Rate Mortgage - A mortgage whose interest rate remains constant over the life of the loan. The payments are not necessarily level. (See Graduated Payment Mortgage and Growing Equity Mortgage).
Fixed Schedule Mortgage - A mortgage whose payment schedule for the life of the loan is established at closing. The payments and interest rate are not necessarily level.
Graduated Payment Mortgage (GPM) - A fixed-rate, fixed-schedule loan which starts with lower payments than a level payment loan; the payments rise annually over the first 5 to 10 years and then remain constant for the remainder of the loan. GPMs involve negative amortization.
Growing Equity Mortgage (Rapid Payoff Mortgage) - A fixed-rate, fixed-schedule loan which starts with the same payments as a level payment loan; the payments rise annually, with the entire increase being used to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less.
Hazard Insurance - Protection against damage caused by fire, windstorm, or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Housing Finance Agency - A state agency which offers a limited amount of below-market-rate home financing for low-and moderate-income households.
Index - The interest rate or adjustment standard which determines the changes in monthly payments for an adjustable rate loan.
Infrastructure - The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems
Interest - The cost paid to a lender for the use of borrowed money.
Joint Tenancy - A form of ownership by which the tenants own a property equally. If one dies, the other would automatically inherit the entire property.
Level Payment Mortgage - A mortgage whose payments are identical for each month over the life of the loan.
Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer finds a loan.
Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying the loan amount, length of time and conditions.
Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, then sells the loans to investors.
Mortgagee - The lender who makes a mortgage loan.
Mortgage Loan - A contract in which the borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep the home insured, to pay all taxes, and to keep the property in good condition.
Mortgage Origination Fee - A charge by a lender for the work involved in preparing and servicing a mortgage application (usually 1 percent of the loan amount).
Negative Amortization - An increase in the outstanding balance of a loan when a monthly payment is not large enough to cover all of the interest due.
Note - A formal document showing the existence of a debt and stating the terms of repayment.
PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).
Point - A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.
Prepayment - Payment of all or part of a debt prior to its maturity.
Principal - The amount borrowed in a loan, excluding interest and other charges.
Property Survey - A survey to determine the boundaries of your property. The cost will depend on the complexity of the survey.
Rapid Payoff Mortgage - (See Growing Equity Mortgage).
Recording Fee - A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.
Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.
R-Value - The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value.
Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed-upon terms.
Settlement - (See Closing).
Shared Appreciation Mortgage - A loan in which partners agree to share specified portions of the downpayment, monthly payment, and appreciation.
Tenancy in Common - A form of ownership in which the tenants own separate but equal parts. To inherit the property, a surviving tenant would either have to be mentioned in the will or, in the absence of a will, be eligible through state inheritance laws.
Title - Evidence (usually in the form of a certificate or deed) of a person’s legal right to ownership of a property.
Transfer Taxes - Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdictions.
Veterans Administration (VA) - A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.
Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.
Warranty - A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.
Zoning - Regulations established by local governments regarding the location, heightFeature Articles, and use for any given piece of property within a specific area.
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http://www.houseplancentral.com
ABOUT THE AUTHOR
Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com
and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.
Is it really Possible for Men to Develop Cellulite?
When you think of cellulite you mainly think of women. It is never far from a womans conversation, and magazines are constantly bombarding us with articles on why cellulite is terrible.
However, you never hear a man talking about cellulite, so does that mean that men do not suffer from it? Is it only a womans condition?
Men and Cellulite
Whilst it is more uncommon for men to get cellulite, it can and does happen. The main reason they do not get it as often, is because their skin is generally thicker than womens skin.
Women tend to get cellulite on their thighs, buttocks, breasts and abdomen, whilst men tend to get it on their neck and on their abdomens.
Mens fat is stored further into the skin than a womans fat and it is deposited in different places, and so that is another reason why they do not often get cellulite.
What Causes Cellulite?
Cellulite is mainly caused by the fat cells under the skin, changing shape. The tissue which is in the fat cells becomes fibrous and they pull together around the fat. The fat is then squeezed and it appears as dimples under the skin.
Some people mistakenly think that cellulite is down to a person being overweight; however you can get cellulite whether you are slim or overweight.
It is not really certain as to what causes cellulite to appear. It is thought that various factors include hormones, excess tobacco or alcohol, poor blood circulation and an excess of rich foods.
Hormones are mainly though to be the main cause as teenagers and pregnant women are more at risk of developing it. Unfortunately pregnant women often find that if they do have cellulite, it usually gets worse during their pregnancy.
Some doctors do not recognize cellulite as a medical problem and that has left speculation as to whether or not the condition actually exists, or if it is just something that has been created by womens magazines.
It is also thought that sometimes a traumatic injury can be the cause of cellulite as it can often affect the circulatory system.
What Can Help Cellulite?
There are numerous theories when it comes to fighting off cellulite and many people agree that exercise is not really the answer. This is because you can develop cellulite no matter what body shape you have, the main thing is to keep yourself as healthy as possible. That is all you can really do, so the following tips may help:
Drink Plenty of Water and cut Down on Caffeine
Water really helps to flush the body of toxins and it keeps the body hydrated. Caffeine on the other hand can contribute to the formation of cellulite as the toxins often get trapped in the fatty tissue.
Cut Out Smoking
Smoking tends to weaken the skin as the capillaries are constricted. It also manages to damage the connective tissue which causes the dimpling effect. So, not only is smoking bad for the lungs and arteries, it is also a contributor towards cellulite!
Stopping as Much Stress as Possible
Stress really can be bad for your health and when the body is stressed, it can block tissue within the body and prevent waste elimination and purification.
Overall it is simply best to try and live as healthy as possible. There are plenty of creams and lotions out there which claim to get rid of cellulite forever, but a lot of these are cons.
It is always better to try and get rid of cellulite naturallyArticle Submission, rather than using the many creams that are only designed to con you out of your money!
ABOUT THE AUTHOR
However, you never hear a man talking about cellulite, so does that mean that men do not suffer from it? Is it only a womans condition?
Men and Cellulite
Whilst it is more uncommon for men to get cellulite, it can and does happen. The main reason they do not get it as often, is because their skin is generally thicker than womens skin.
Women tend to get cellulite on their thighs, buttocks, breasts and abdomen, whilst men tend to get it on their neck and on their abdomens.
Mens fat is stored further into the skin than a womans fat and it is deposited in different places, and so that is another reason why they do not often get cellulite.
What Causes Cellulite?
Cellulite is mainly caused by the fat cells under the skin, changing shape. The tissue which is in the fat cells becomes fibrous and they pull together around the fat. The fat is then squeezed and it appears as dimples under the skin.
Some people mistakenly think that cellulite is down to a person being overweight; however you can get cellulite whether you are slim or overweight.
It is not really certain as to what causes cellulite to appear. It is thought that various factors include hormones, excess tobacco or alcohol, poor blood circulation and an excess of rich foods.
Hormones are mainly though to be the main cause as teenagers and pregnant women are more at risk of developing it. Unfortunately pregnant women often find that if they do have cellulite, it usually gets worse during their pregnancy.
Some doctors do not recognize cellulite as a medical problem and that has left speculation as to whether or not the condition actually exists, or if it is just something that has been created by womens magazines.
It is also thought that sometimes a traumatic injury can be the cause of cellulite as it can often affect the circulatory system.
What Can Help Cellulite?
There are numerous theories when it comes to fighting off cellulite and many people agree that exercise is not really the answer. This is because you can develop cellulite no matter what body shape you have, the main thing is to keep yourself as healthy as possible. That is all you can really do, so the following tips may help:
Drink Plenty of Water and cut Down on Caffeine
Water really helps to flush the body of toxins and it keeps the body hydrated. Caffeine on the other hand can contribute to the formation of cellulite as the toxins often get trapped in the fatty tissue.
Cut Out Smoking
Smoking tends to weaken the skin as the capillaries are constricted. It also manages to damage the connective tissue which causes the dimpling effect. So, not only is smoking bad for the lungs and arteries, it is also a contributor towards cellulite!
Stopping as Much Stress as Possible
Stress really can be bad for your health and when the body is stressed, it can block tissue within the body and prevent waste elimination and purification.
Overall it is simply best to try and live as healthy as possible. There are plenty of creams and lotions out there which claim to get rid of cellulite forever, but a lot of these are cons.
It is always better to try and get rid of cellulite naturallyArticle Submission, rather than using the many creams that are only designed to con you out of your money!
ABOUT THE AUTHOR
Keep YOURSELF looking and feeling great with these great FREE
Beauty Tips from http://www.NaturalElements.co.uk
In just seconds you can access over 36 beauty topics that will keep you looking younger and more radiant. You can now get the very latest information on Natural Beauty Products by subscribing with RSS
Good News About Bad Credit Car Loans
If you have bad credit and are thinking about buying a car, here are a few of the differences between choosing a new or used vehicle.
Almost half of all car purchases in America are financed. Couple this with that fact that 30 million Americans have credit problems and you see why there’s such an interest in bad credit car loans.
While carrying higher interest rates than prime loans, bad credit car loans are not hard to get. Even people who have filed for bankruptcy can find a decent deal on auto financing if they shop around. It won’t make that much difference whether they buy new or used.
Bad Credit Car Loans - Buying New
For peace of mind, safety and hassle-free driving, there’s nothing like buying a new car. When you buy new, you have more control over optional features than if you buy a pre-owned vehicle. You will also get a new warranty that lasts much longer than the extended warranty you can buy for used cars.
The danger in buying new is getting “upside down” on the bad credit car loan. One way to avoid this is to have a decent down payment—20% or better. Another way is to choose a vehicle with high resale value. This will help slow down depreciation.
Depreciation is the difference between the Manufacturer’s Suggested Retail Price (MSRP) when you bought the vehicle and what it’s now worth. A $25,000 car will depreciate an average of 15% the first year and between 7% and 10% annually for the next two years. Cars with a prestigious nameplate hold their value longer and are less likely to depreciate faster than the car loan.
Bad Credit Car Loans - Buying Used
Buying a used vehicle makes sense if you want to keep your monthly payments affordable. Since used cars depreciate slower than new cars, they make better short-term collateral for lenders. However, some lenders will decrease the loan’s term and increase the rate on bad credit car loans.
When you buy used, you have the chance to get a more expensive model than you could afford if you bought it new. For about the same amount, you could own a new Hyundai, a two-year-old Taurus, or a six-year-old BMW.
Getting a used vehicle from a private party will be cheaper than buying the same car from a dealership. Here are a few questions you’ll want to ask the seller:
- How long have you owned the vehicle?
- Has the vehicle been in an accident or repainted?
- When are the next state inspection and emissions tests due?
- How often has the oil and filter been changed?
- Why are you selling the vehicle?
First Things First
With the ease of the online application process at sites like Buy A Auto, you can pre-qualify for a bad credit car loan before you start shopping for a vehicle. Make sure to borrow enough money to cover all the costs associated with the purchase such as dealer prep charges, if you are buying new, license plates, title and registration fees, etc.
Remember that total price is more important than the monthly payment. Stretching the length of a bad credit car loan will mean paying more interest. For instance, the payments on a $20,000 loan can be lowered from $500 a month to $360 by extending the term from 48 months to 72 months. However, this will cost about $2,000 more over the life of the loanHealth Fitness Articles, or 10 percent of the loan amount.
ABOUT THE AUTHOR
Mike Hamel is the author of three business books and several articles about mortgage financing. His material is featured on sites like PreApproved Autos.
Almost half of all car purchases in America are financed. Couple this with that fact that 30 million Americans have credit problems and you see why there’s such an interest in bad credit car loans.
While carrying higher interest rates than prime loans, bad credit car loans are not hard to get. Even people who have filed for bankruptcy can find a decent deal on auto financing if they shop around. It won’t make that much difference whether they buy new or used.
Bad Credit Car Loans - Buying New
For peace of mind, safety and hassle-free driving, there’s nothing like buying a new car. When you buy new, you have more control over optional features than if you buy a pre-owned vehicle. You will also get a new warranty that lasts much longer than the extended warranty you can buy for used cars.
The danger in buying new is getting “upside down” on the bad credit car loan. One way to avoid this is to have a decent down payment—20% or better. Another way is to choose a vehicle with high resale value. This will help slow down depreciation.
Depreciation is the difference between the Manufacturer’s Suggested Retail Price (MSRP) when you bought the vehicle and what it’s now worth. A $25,000 car will depreciate an average of 15% the first year and between 7% and 10% annually for the next two years. Cars with a prestigious nameplate hold their value longer and are less likely to depreciate faster than the car loan.
Bad Credit Car Loans - Buying Used
Buying a used vehicle makes sense if you want to keep your monthly payments affordable. Since used cars depreciate slower than new cars, they make better short-term collateral for lenders. However, some lenders will decrease the loan’s term and increase the rate on bad credit car loans.
When you buy used, you have the chance to get a more expensive model than you could afford if you bought it new. For about the same amount, you could own a new Hyundai, a two-year-old Taurus, or a six-year-old BMW.
Getting a used vehicle from a private party will be cheaper than buying the same car from a dealership. Here are a few questions you’ll want to ask the seller:
- How long have you owned the vehicle?
- Has the vehicle been in an accident or repainted?
- When are the next state inspection and emissions tests due?
- How often has the oil and filter been changed?
- Why are you selling the vehicle?
First Things First
With the ease of the online application process at sites like Buy A Auto, you can pre-qualify for a bad credit car loan before you start shopping for a vehicle. Make sure to borrow enough money to cover all the costs associated with the purchase such as dealer prep charges, if you are buying new, license plates, title and registration fees, etc.
Remember that total price is more important than the monthly payment. Stretching the length of a bad credit car loan will mean paying more interest. For instance, the payments on a $20,000 loan can be lowered from $500 a month to $360 by extending the term from 48 months to 72 months. However, this will cost about $2,000 more over the life of the loanHealth Fitness Articles, or 10 percent of the loan amount.
ABOUT THE AUTHOR
Mike Hamel is the author of three business books and several articles about mortgage financing. His material is featured on sites like PreApproved Autos.
Buying the Perfect Computer – The FIRST Time
Discover how to make a wise decison on your next computer purchase.
So you’ve finally decided it’s time for a change. No matter what advice you follow that old work horse of a desktop computer you have has outlived its usefulness with slow loading applications and
a continuous rise in operation noise. Searching for that Perfect Computer can be about as much fun as purchasing a new car and about as frustrating also when sorting through the various brands while trying to decide which “bells and whistles” best fit your needs. Besides all that trying to return something that is so large can be both inconvenient and very difficult to do. So making the right decision the FIRST time is the wise path of choice.
For starters you’ll need to decide what you want to do with your computer. Are you into the video game scene or are you someone who likes to just surf the internet and occasionally do some book keeping with simple word processing software?
If you’re into video games you’re going to want a machine that can handle the high level of graphics and superior sound quality. On the other hand if you’re not into all that high adrenalin stuff can probably get by with a less expensive system. Although, if you want to stay on the safe side I would recommend going with something more “high-end” so you don’t have to spend another large chunk of change to upgrade the system you just bought.
There are two basic routes you can take when purchasing
a new computer.
1) Purchase a “Brand Name” Computer
2) Purchase a “Clone” Computer
A “BRAND-NAME” computer is one that is manufactured by a company that is recognizable by name.
Some Advantages/Disadvantages of “Brand-Name” computers include:
Advantages-
Customer Support- If you are experiencing problems with your computer you will have the option to contact a representative of the company that you purchased the PC from to get help in solving your problem.
Customer support is probably the best reason to buy a brand-name computer.
Warranty- Having a warranty is always nice since it acts as a type of security blanket for you.
In case a part on your computer should fail you should be able to get the item fixed at no charge just as long as the warranty has not expired.
Read and understand a company’s warranty policy BEFORE you purchase a computer from them.
This way you’ll have a good understanding of the procedures to follow in case a problem should arise.
Pre-installed Software- Many companies will include software packages that are all set up and ready to go for you on your computer.
Although, a disadvantage of buying a brand-name computer with software pre-installed is that you usually end up with more than fits your needs and usually just results with the wasting of space on your storage device.
Additional Support- Most brand-name computer companies are also able to provide you with web sites that may provide you with current software updates, user manuals, or basic troubleshooting help.
Disadvantages-
The use of Proprietary parts- the term Proprietary refers to products that are unique to an individual company and that company only.
So if a part was to malfunction on your computer after warranty and you needed to replace it you could not just go to your local computer store and purchase any old part even if it was intended for the same function as the item that failed.
You would be forced to buy the exact same item that came out of the computer or else the computer would more than likely cease to function correctly.
Having to buy proprietary parts usually involves the need to place an order which means you’ll have to wait for the part to arrive or you’ll have to send your computer into the company or an authorized dealer of that company for repairs.
People with a home based business would probably not be too happy with that situation at all.
Integrated/On-board parts- In the computer world when you hear the word integrated or on-board it means that a particular part such as the modem or sound port where you plug in your speakers, is built-in or part of the computer main board (Also known as the Motherboard).
This means that if any of these items should fail, you can’t just remove them from the computer and replace them with a new part. They are usually soldered directly to the main board and are stuck there.
Although, some computers do provide a way to disable a malfunctioning device which will allow you to install your own store bought device to take the place of the broken part.
From a computer technicians point of view this is not always easy to do.
It just depends on what brand of computer you currently have. Meaning some are easier to work on than others.
A “CLONE” computer is a clone or a copy of its brand-name counterpart with the exception that instead of company specific or proprietary parts, the items used to make a clone computer are from several different companies instead of only one.
Let’s say that if you were to go to a local company that builds “clone” computers, and you tell them what you need, chances are they don’t use parts that are specific to only that type of computer like the brand-name computer companies do.
This is a good thing because it means that they will probably use components that are interchangeable with many different brands and are easy to come by if needed.
Some Advantages/Disadvantages of “Clone” computers include:
Advantages-
Cost- compared to brand-name computers the clone will generally be easier on your pocket book when purchasing one with similar features as its brand-name counterpart.
This is most likely due to the money that is saved by not offering the high-end customer service. Although, that may not be the only reason for the lower prices.
Easily Accessible Replacement Parts- Since the clone computer was built with parts that are not any one company specific, you can buy parts for the clone computer that can be used even if the brand is different from the one that was in the computer when you originally bought it.
Note: Before you buy any parts, it is necessary to make sure that the replacement parts are compatible with your particular computers system requirements.
Either consult the manual that should have came with your computer or get help from a knowledgeable friend or repair person.
Disadvantages-
Warranties- Unless you purchase a service plan you will typically not have as an attractive warranty as you would with a brand-name computer company.
Whatever you do just make sure you understand how long the warranty is for and as to what kind of repairs the warranty covers before you make the purchase.
Customer Support- With brand-name computer companies you are usually provided with a 24-hour toll free number that you can call if you have questions or concerns with your computer.
Clone computers are more than likely not going to have a 24-hour help service, but rather you will be forced to only be able to call during regular business hours.
Also, it is more than likely that there will not be any one website that you can go to in order to find out information concerning troubleshooting questions you may have.
For service it may be necessary to take the computer back to the store that you bought it at or you may have to do some research on the individual parts that went into the computer and visit the manufacturer’s website for troubleshooting tips.
Finally, if all else fails you can certainly take what you have learned from this article and being that you know what you need now, but don’t know where to go and get that “Perfect Computer”Psychology Articles, the best resource at your disposal are the very men and woman that work at your local electronics shop.
It is their duty to help you get hold of that “Perfect Computer” that best fits your needs. All you need to do is tell them what you plan on using that computer for and they should be more than happy to help you from there.
resourcebox: -Feel free to reprint this article on paper or on your website just as long as the author is given credit for his work and the resource box and all information held within is not altered.-
Dan Preston is the author of a digital book called “How and Why to Care for Your Computer”. He is the webmaster of a site called InfoHeaven Digital Books where you can find useful Free information and many how-to digital books that cover a large variety of interesting topics. http://infoheaven-digital-books.com (c) Dan Preston - All rights reserved
ABOUT THE AUTHOR
Dan Preston owns his own online digital bookshop called InfoHeaven Digital Books. He believes that the more a person knows the better off they are in life. This is why he has decided to help people get those how-to questions of theirs answered by offering such books. He also enjoys troubleshooting and repairing computer problems. As the owner of three computers it is no doubt as to why he has such an interest. http://infoheaven-digital-books.com
So you’ve finally decided it’s time for a change. No matter what advice you follow that old work horse of a desktop computer you have has outlived its usefulness with slow loading applications and
a continuous rise in operation noise. Searching for that Perfect Computer can be about as much fun as purchasing a new car and about as frustrating also when sorting through the various brands while trying to decide which “bells and whistles” best fit your needs. Besides all that trying to return something that is so large can be both inconvenient and very difficult to do. So making the right decision the FIRST time is the wise path of choice.
For starters you’ll need to decide what you want to do with your computer. Are you into the video game scene or are you someone who likes to just surf the internet and occasionally do some book keeping with simple word processing software?
If you’re into video games you’re going to want a machine that can handle the high level of graphics and superior sound quality. On the other hand if you’re not into all that high adrenalin stuff can probably get by with a less expensive system. Although, if you want to stay on the safe side I would recommend going with something more “high-end” so you don’t have to spend another large chunk of change to upgrade the system you just bought.
There are two basic routes you can take when purchasing
a new computer.
1) Purchase a “Brand Name” Computer
2) Purchase a “Clone” Computer
A “BRAND-NAME” computer is one that is manufactured by a company that is recognizable by name.
Some Advantages/Disadvantages of “Brand-Name” computers include:
Advantages-
Customer Support- If you are experiencing problems with your computer you will have the option to contact a representative of the company that you purchased the PC from to get help in solving your problem.
Customer support is probably the best reason to buy a brand-name computer.
Warranty- Having a warranty is always nice since it acts as a type of security blanket for you.
In case a part on your computer should fail you should be able to get the item fixed at no charge just as long as the warranty has not expired.
Read and understand a company’s warranty policy BEFORE you purchase a computer from them.
This way you’ll have a good understanding of the procedures to follow in case a problem should arise.
Pre-installed Software- Many companies will include software packages that are all set up and ready to go for you on your computer.
Although, a disadvantage of buying a brand-name computer with software pre-installed is that you usually end up with more than fits your needs and usually just results with the wasting of space on your storage device.
Additional Support- Most brand-name computer companies are also able to provide you with web sites that may provide you with current software updates, user manuals, or basic troubleshooting help.
Disadvantages-
The use of Proprietary parts- the term Proprietary refers to products that are unique to an individual company and that company only.
So if a part was to malfunction on your computer after warranty and you needed to replace it you could not just go to your local computer store and purchase any old part even if it was intended for the same function as the item that failed.
You would be forced to buy the exact same item that came out of the computer or else the computer would more than likely cease to function correctly.
Having to buy proprietary parts usually involves the need to place an order which means you’ll have to wait for the part to arrive or you’ll have to send your computer into the company or an authorized dealer of that company for repairs.
People with a home based business would probably not be too happy with that situation at all.
Integrated/On-board parts- In the computer world when you hear the word integrated or on-board it means that a particular part such as the modem or sound port where you plug in your speakers, is built-in or part of the computer main board (Also known as the Motherboard).
This means that if any of these items should fail, you can’t just remove them from the computer and replace them with a new part. They are usually soldered directly to the main board and are stuck there.
Although, some computers do provide a way to disable a malfunctioning device which will allow you to install your own store bought device to take the place of the broken part.
From a computer technicians point of view this is not always easy to do.
It just depends on what brand of computer you currently have. Meaning some are easier to work on than others.
A “CLONE” computer is a clone or a copy of its brand-name counterpart with the exception that instead of company specific or proprietary parts, the items used to make a clone computer are from several different companies instead of only one.
Let’s say that if you were to go to a local company that builds “clone” computers, and you tell them what you need, chances are they don’t use parts that are specific to only that type of computer like the brand-name computer companies do.
This is a good thing because it means that they will probably use components that are interchangeable with many different brands and are easy to come by if needed.
Some Advantages/Disadvantages of “Clone” computers include:
Advantages-
Cost- compared to brand-name computers the clone will generally be easier on your pocket book when purchasing one with similar features as its brand-name counterpart.
This is most likely due to the money that is saved by not offering the high-end customer service. Although, that may not be the only reason for the lower prices.
Easily Accessible Replacement Parts- Since the clone computer was built with parts that are not any one company specific, you can buy parts for the clone computer that can be used even if the brand is different from the one that was in the computer when you originally bought it.
Note: Before you buy any parts, it is necessary to make sure that the replacement parts are compatible with your particular computers system requirements.
Either consult the manual that should have came with your computer or get help from a knowledgeable friend or repair person.
Disadvantages-
Warranties- Unless you purchase a service plan you will typically not have as an attractive warranty as you would with a brand-name computer company.
Whatever you do just make sure you understand how long the warranty is for and as to what kind of repairs the warranty covers before you make the purchase.
Customer Support- With brand-name computer companies you are usually provided with a 24-hour toll free number that you can call if you have questions or concerns with your computer.
Clone computers are more than likely not going to have a 24-hour help service, but rather you will be forced to only be able to call during regular business hours.
Also, it is more than likely that there will not be any one website that you can go to in order to find out information concerning troubleshooting questions you may have.
For service it may be necessary to take the computer back to the store that you bought it at or you may have to do some research on the individual parts that went into the computer and visit the manufacturer’s website for troubleshooting tips.
Finally, if all else fails you can certainly take what you have learned from this article and being that you know what you need now, but don’t know where to go and get that “Perfect Computer”Psychology Articles, the best resource at your disposal are the very men and woman that work at your local electronics shop.
It is their duty to help you get hold of that “Perfect Computer” that best fits your needs. All you need to do is tell them what you plan on using that computer for and they should be more than happy to help you from there.
resourcebox: -Feel free to reprint this article on paper or on your website just as long as the author is given credit for his work and the resource box and all information held within is not altered.-
Dan Preston is the author of a digital book called “How and Why to Care for Your Computer”. He is the webmaster of a site called InfoHeaven Digital Books where you can find useful Free information and many how-to digital books that cover a large variety of interesting topics. http://infoheaven-digital-books.com (c) Dan Preston - All rights reserved
ABOUT THE AUTHOR
Dan Preston owns his own online digital bookshop called InfoHeaven Digital Books. He believes that the more a person knows the better off they are in life. This is why he has decided to help people get those how-to questions of theirs answered by offering such books. He also enjoys troubleshooting and repairing computer problems. As the owner of three computers it is no doubt as to why he has such an interest. http://infoheaven-digital-books.com
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