Cyprus Home Property

Cyprus is a hotspot for real estate opportunities it is a premier tourist destination with its natural beauty and friendliness, drawing people to invest in Cyprus property. While the recession has affected many countries negatively, Cyprus has enjoyed a relatively unaffected steady growth over the past decade.

Why is Cyprus such a wonderful place to invest in property? –

It is a popular, warm and sunny island, ideal for those who want a summer home. With its friendly folk, relaxing ambience, pristine beaches and sandy shores, what else is there to be desired in a Cyprus property? Cyprus has one of the most agreeable climates in the world warm summers and mild winters and is consistently bright and sunny for 11 out of 12 months.

In addition to the gorgeous coastlines and ancient archaeological sites across the island, Cyprus has plenty to offer to would-be home owners. Cyprus boasts an advanced economy, a booming infrastructure and a stable government. The cost of living is relatively low compared to its European counterparts, whilst the quality of life is healthier.

The excellent news for an investor searching for Cyprus property is that English is the second language spoken there, so it is not essential to learn the native language Greek to communicate with the locals and negotiate for the best properties available. Cyprus has also adapted the British-based banking and legal system, so the paperwork is quite similar to that used in English property transactions. Ever since 2004, Cyprus was included as a member of the European Union (EU), and adopted the euro as its currency in 2008. This makes it easier for EU citizens without permanent residency to buy properties in this wonderful island.

Cyprus is an extremely safe place to live, and boasts a very low crime rate. It has excellent medical, educational and communication facilities, making the decision to buy property easier, knowing that you will be living in a safe and developed environment. Even if you do not want to live in Cyprus, purchasing property is still an excellent investment and is quite lucrative for those looking to make money. One can buy property and be assured that its value will increase as the years go by.
Searching for the right property to buy in Cyprus is no easy task, and it is best to get the services of a Cyprus realtor to get the best advice on your investments.

What Is An Adjustable Rate Mortgage Or Arm

Copyright 2006 Jason P Bertrand

An adjustable rate mortgage is a mortgage loan that is fixed for a set period of time and then adjusts based on the rates during the adjustment period. Some common adjustable rate mortgage loans terms are 1/1, 3/1, 5/1, 7/1, and 10/1. The first number in what appears to be a fraction is the amount of time the rate stays fixed. The second number is the amount of time between adjustments. For example a 5/1 Adjustable rate mortgage would stay fixed for 5 years and then adjust annually.

An adjustable rate mortgage generally offers a lower rate than a fixed rate loan initially; however, it could adjust to a higher rate than the initial fixed rate mortgage would have been. An Adjustable rate mortgage, also called an ARM, is very good for a person that knows specifically how long they will be living at a specific residence. In other words, a person who knows for a fact that they will be moving in four years would benefit from a 5/1 ARM because they would be moving out of that home and mortgage prior to the first adjustment period.

Adjustable rate mortgage loans also have an adjustment cap and a lifetime cap. For example a 5/1 arm could have an adjustment cap of 2% and a lifetime cap of 6%. So in a worst case scenario, a 5/1 Arm with a 2/9 cap and an initial rate of 5% would stay fixed at 5% for five years. At the five year mark the rate could adjust a maximum of 2% to 7%, after another year it could adjust 2% to 9% and after the next year could adjust to 11%. 11% would be the lifetime cap and therefore the adjustable rate mortgage could not increase any more. If the rates go down however, the rate could adjust lower after any given year.

There is however a floor rate which is the minimum rate the loan could ever achieve. In other words if the loan started at 5% and the floor rate was 4% the interest rate would never drop below 4%.

The difference between a fixed rate and adjustable rate mortgage is the fact that a fixed rate loan may start at 6.5% instead of 5% so for the first 5 years one would be receiving an interest rate 1.5% below that of a fixed.