Interest-Only Mortgage Payments and Payment Option ARMs - - Are They for You? Consumer Information!

Darren Meade
Who Really has the Lowest Rates!

Has anyone Exposed The Truth About Interest-Only Loans?

How do you know if a Payment Option ARM is toxic?

If you have ever shopped for the lowest rate on a home loan, you know how frustrating and time-consuming the process can be. And when you finally apply for the loan, you find out that the rate you were quoted "doesn't apply to you", or that it was a "special promotion" that is now over.

Then you have to decipher all the new 'exotic', or nontradtional loans. The Federal Reserve Board issued a joint Press Release today which may help.

The federal bank, thrift, and credit union regulatory agencies today announced the publication of a new resource that can help consumers make more informed choices when considering nontraditional mortgage loans.

Interest-Only Mortgage Payments and Payment-Option ARMs--Are They for You? features a glossary of lending terms, a mortgage shopping worksheet, and a list of additional information sources. This information can help consumers, whether buying a house or refinancing a mortgage, decide if an interest-only mortgage (an I-O mortgage) or an adjustable-rate mortgage (ARM) with the option to make a minimum payment (a payment-option ARM) is right for them.

The publication stresses the importance of understanding key mortgage loan terms, warns of the risks consumers may face, and urges borrowers to be realistic about whether they can handle future payment increases. If consumers are not comfortable with these risks, the publication suggests that they ask about other mortgage products.

Many lenders offer home loans that allow consumers to (1) pay only the interest on the loan during the first few years of the loan term; or (2) make only a specified minimum payment that could be less than the monthly interest on the loan. Lenders have a variety of names for these loans, but with I-O mortgages and payment-option ARMs, consumers could face "payment shock." Monthly payments may double or even triple following the interest-only period or when the payments adjust.


In addition, consumers with payment-option ARMs could face negative amortization, a situation in which the monthly payments do not cover all of the interest owed for that month. The unpaid interest is added to the mortgage balance so that the amount owed on the mortgage exceeds the amount originally borrowed.

The interagency information is available on each agency's web site. A PDF (Portable Document Format) version is provided so that consumer groups, financial institutions, agencies, and other organizations can download and print copies for distribution to their clients and customers. It includes a space on the back panel for organizations to provide their own contact information. The web addresses are:

http://www.federalreserve.gov/pubs/mortgage_interestonly/default.htm

http://www.fdic.gov/consumers/consumer/interest-only/index.html

http://www.occ.treas.gov

http://www.ncua.gov/Publications/Index.htm

http://www.ots.treas.gov

Single copies of the brochure are available free of charge from:

Publications, Mail Stop 127, Federal Reserve Board, 20th and C Streets, N.W., Washington, DC 20551; 202-452-3245

FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington VA 22226; 877-ASK-FDIC, 703-562-2200

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Darren Meade

To share with you a brief history, I was homeless as a teenager for two-and-half years where I lived in the streets begging for food and change. As you can imagine, my life was filled with a great deal of uncertainty.

By divine grace and guidance, I took shelter in the parking lot of a gym. The owner of the gym noticed me camping out there and after several weeks took me in. Pretty soon I had been adopted by the group of bodybuilders there and was given the nickname 'Pup'.

However, it was after the very painful experience of my father committing suicide six months after getting off the street that I began my personal journey into spiritual growth and began questioning how I could affect a greater number people in a more loving, profound and personal way.

Over the course of several years I went from being homeless to living in a condo on a golf course and representing the United States in international events culminating in winning the middleweight title of the IFBB Mr. North America bodybuilding competition. At the same time I co-founded a nutritional which exploded in the nutrition market and by age 27 I made my first million. Being young, I then squandered my first 3 million to turn around and build it again and again...slow learner at times!

Many of my lessons learned through out my spiritual path have been in the face of adversity. While "crisis" has often had its own way of waking me to the moment and reminding me of what is important to me now, it is not a requirement of this journey.

Just when I thought I had a handle on life, the handle broke.

I've learned another new lesson about life; including truly releasing and forgiving those whom hurt you. In April 2008 my aorta (main artery from your heart) ruptured in three (3) places.

I was given less than a 10% chance of survival and I was on life-support for 3 weeks. During this time the charge nurse spoke to a family friend and informed them they were going to amputate my leg, and that I was to young to die and they needed to transfer me to a new hospital (UCLA).

While I lived, my personal relationship ended within 10 days of my being discharged from the hospital. To be fair the doctors said I might never walk again, and that they believed I would be on a catheter for the rest of my life. I lost 50lbs of muscle. So she was leaving someone who might never be able to walk; make love or be able to return to work. However I've always been an over-achiever.

For instance I went off diaylisis, my bladder which had nerve damage returned to normal, the catheters out and I the leg another hospital wanted to amputate is responding and I'm learning to walk on it once again. I no longer use my wheel chair and am learning to walk without crutches.

The only suffering came from my own thoughts, believing this person would be with me to over-come these issues. I now realize that was the largest blessing of all.

EXECUTIVE BIOGRAPHY OF DARREN M. MEADE


Darren Meade, of Kairos-Meade, has a life, which exhibits the quintessential triumphant story. He was abandoned by his parents and homeless at the age of 14, weighing less than 100 pounds and today negotiates multi-million dollar agreements.

His business career developed initially from his passion for body building. As a youth, after being homeless for two-years, he was taken in by individuals who allowed him to utilize their company gym. Darren focused that passion and successfully won several awards in competitive body building, culminating in winning the Mr. North America title for the middleweight division and represented the United States in international events. His extensive exposure in competitive body building assisted in developing relationships with industry leaders in the medical device and nutritional supplement industries.

As Darren rapidly progressed in
professional endeavors, he designed a new business model not yet used in the industry for a then unknown nutritional company. The retail experiment led by Darren worked, and within two years he drove sales from $1 million to in excess of $40 million.

Moving forward to his next success, Darren proved that he could do it again and took another company to $35 million in a single year. He diligently oversaw all facets of assisting an international research organization´s quest to gain acceptance in the U.S. biotechnology sector by partnering with one of the world´s largest biotechnology companies within only five-months. This was accomplished after the organization had tried for years and used over 50 consultants and development personnel without results.

A key to Darren´s success is his passion for each new business he enters. He specializes in building profitable long-term relationships with clients, vendors and staff.
He has proven that success is contagious.

In addition to his business accomplishments, Darren has actively participated through service of time and finances to homeless shelters and civic community organizations. He is a Deputy CEO of the Invisible Youth Foundation. Darren recently volunteered on Arnold Schwarzenegger´s successful run for Governor. Due to his efforts, he was offered a position in Sacramento. He was selected by the Orange County Register to write columns regarding the process of the campaign through to the inauguration and planning for policies.