Strangeness in Mortgage/Loan Repayment Druid

[Derek Atkins]

Daniel Hannum <dhannum at magicdan.net> writes:

> I'm looking into fixing this myself rather than bothering with
> bugzilla. (as an aside, is that ok, or, from a change-control
> standpoint, do you want a bug filed?)

For the record, I prefer to see a bug report, even if it's a short
explanation and an attached patch (please make sure the patch is an
attachment, not "inlined" -- use the bugzilla "attach a file"
feature).  It makes it easier to "remember" what "bugs" have been
fixed, and when other people report the problem we can tie it into the
actual problem.

> So I'm confused. It's probably my fault because I have no idea what
> 10/1 Year even means.

10/1 is an ARM (Adjustable Rate Mortgage).  It means that the rate is
constant for 10 years, and then adjusts every 1 year thereafter.  Most
ARMs also have a "term" (e.g. 30 years) -- so the first N years of an
ARM look exactly the same of the first N years of a mortgage of the
same term.  So, a 10/1, 30 year ARM would look the same as a 30 year
fixed.  The only difference is that in 10 years the interest rate will
change.

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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