Glossary
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Margin
The number of percentage points the lender adds to the index rate to calculate the interest rate of an adjustable-rate mortgage (ARM) at each adjustment.
Negative amortization
Occurs when the monthly payments in an adjustable-rate mortgage loan do not cover all the interest owed. The interest that is not paid in the monthly payment is added to the loan balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments that are not high enough to cover the interest due or when the minimum payments are set at an amount lower than the amount you owe in interest.
AdjustableRate.org Privacy Policy
This policy sets out how AdjustableRate.org uses your personal information and explains:
This policy applies to AdjustableRate.org and explains how AdjustableRate.org uses personal information collected through the 'Site'.
AdjustableRate.org is bound by the National Privacy Principles contained in the Commonwealth Privacy Act, except for its activities carried on in the course of journalism which are exempt. AdjustableRate.org has publicly committed to complying with the Australian Press Council Privacy Standards for the use of personal information in the course of journalism. AdjustableRate.org may, from time to time, review and update this privacy policy statement to take account of new laws and technology and changes to AdjustableRate.org’s operations. All personal information held by AdjustableRate.org will be governed by AdjustableRate.org's most recent policy, posted on the Site.
What kind of personal information AdjustableRate.org collects and how it is collected
AdjustableRate.org collects personal information from a variety of sources, including from members of the public, advertisers, prospective employees, mailing lists, recruitment agencies, contractors and business partners.
In general, the personal information AdjustableRate.org collects includes (but is not limited to) name, address, contact details, gender, occupation, in some cases membership of professional associations and, where relevant, financial information, including credit card information, banking details and income information.
Personal Information you provide: We store the personal information you enter on the AdjustableRate.org website or give to AdjustableRate.org in other ways. We obtain most personal information through the posting of ads or discussion forums via the AdjustableRate.org website. You may provide information when you request or acquire a product or service from AdjustableRate.org or its related companies, provide a product or service to AdjustableRate.org, complete a survey or questionnaire, enter a competition, participate in forums or when you communicate with AdjustableRate.org by e-mail, telephone or in writing (for example if you contact customer service or provide feedback).
Automatic collection: Cookies: We may use a feature of your browser called a cookie to assign your computer a 'User ID'. Cookies do not contain information by which AdjustableRate.org can identify you. They identify your computer to our servers. You may configure your browser so that you are notified before a cookie is downloaded or so that your browser does not accept cookies. AdjustableRate.org may use information contained in cookies to make assumptions about the user of the computer and to provide users of that computer with focused advertising which AdjustableRate.org believes may be of interest, based on that information. To disable your cookies, please refer to the help menu within your Internet browser.
Indirect collection: AdjustableRate.org endeavors to collect personal information about an individual only from that individual. In some circumstances AdjustableRate.org may obtain personal information from a third party. If you provide personal information about another person to AdjustableRate.org, AdjustableRate.org requires that you inform that person you have done so and provide them with a copy of this policy.
How AdjustableRate.org uses the information you provide
AdjustableRate.org may use information it collects from you for the primary purpose for which it is collected and for such other secondary purposes that are related to the primary purpose of collection.
AdjustableRate.org generally uses personal information to:
provide you with products or services you have requested personalize and customize your experiences on the AdjustableRate.org website; help AdjustableRate.org manage and enhance its services; communicate with you; provide you with ongoing information about opportunities on the AdjustableRate.org website in which AdjustableRate.org believes you may be interested; give you the opportunity from time to time to receive e-mail from AdjustableRate.org.
If you do not provide AdjustableRate.org with that information, AdjustableRate.org will not be able to provide you with the requested product or service.
Disclosure
AdjustableRate.org may disclose personal information to other companies in the AdjustableRate.org which may only use it as set out above.
AdjustableRate.org may also provide your information to: third parties engaged by AdjustableRate.org to perform functions on its behalf, such as processing credit card information, mail outs, debt collection, marketing, research and advertising; third parties authorized by you to receive information held by AdjustableRate.org;
If AdjustableRate.org sells part of its business, personal information may be part of the assets transferred to the purchaser.
The AdjustableRate.org Network contains features where you are invited to send personal information to organizations other than AdjustableRate.org. The choice to send such information to these organizations is entirely yours. You should be aware that any such information you choose to send will not be bound by this policy.
How AdjustableRate.org treats sensitive information
"Sensitive Information" means information relating to a person's racial or ethnic origin, membership of political bodies, religion, membership of a trade union or professional or trade association, sexual preferences, criminal record and health.
AdjustableRate.org may use and disclose Sensitive Information only for the purpose for which it was provided or a directly related secondary purpose or as allowed by law unless you have agreed otherwise.
Management and security of personal information
AdjustableRate.org protects the personal information AdjustableRate.org holds from misuse, loss, unauthorized access, modification or disclosure by various means including firewalls, pass word access, secure servers and encryption of credit card transactions.
Updating personal information
AdjustableRate.org endeavors to ensure that the personal information it holds is accurate, complete and up-to-date.
You can generally update personal information that is not membership information on the AdjustableRate.org website where you submitted that information. Otherwise, please contact AdjustableRate.org on privacy@differentinvestments.com. Where personal information is no longer required by AdjustableRate.org, it will be destroyed or de-identified.
You have the right to seek access the personal information held about you and to advise AdjustableRate.org of any inaccuracy. There are some exceptions to this right set out in the Privacy Act.
If you make an access request, AdjustableRate.org will ask you to verify your identity and specify what information you require. AdjustableRate.org may charge a fee to cover the costs of meeting your request.
Glossary
Points (may be called discount points)
One point is equal to 1 percent of the principal amount of a mortgage loan. For example, if the mortgage is $200,000, one point equals $2,000. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages to cover loan origination costs or to provide additional compensation to the lender or broker. These points usually are paid at closing and may be paid by the borrower or the home seller, or may be split between them. In some cases, the money needed to pay points can be borrowed (incorporated in the loan amount), but doing so will increase the loan amount and the total costs. Discount points (also called discount fees) are points that the borrower voluntarily chooses to pay in return for a lower interest rate.
Prepayment penalty
Extra fees that may be due if you pay off your loan early by refinancing the loan or by selling the home. The penalty is usually limited to the first 3 to 5 years of the loan’s term. If your loan includes a prepayment penalty, make sure you understand the cost. Compare the length of the prepayment penalty period with the first adjustment period of the ARM to see if refinancing is cost-effective before the loan first adjusts. Some loans may have a prepayment penalty even if you make a partial prepayment. Ask the lender for a loan without a prepayment penalty and the cost of that loan.
Principal
The amount of money borrowed or the amount still owed on a loan.
