Information on Adjustable Rate Mortgage and Fixed Rate Mortgage Loans

It’s often been said that a person’s home is probably the single biggest investment he or she can make in life. It’s true; owning a home can be very expensive, but it is necessary. Shelter is a primary need and whether you are single or married with kids, you would need a place of your own. And if you don’t want to go on renting forever, you will have to invest in one.It is assumed that unless you’re counting on some inheritance or some other windfall, you will take out a mortgage when buying your home. Before committing yourself to any mortgage arrangement, however, be sure to learn more about the differences between an adjustable rate mortgage (ARM) loan and a fixed rate mortgage (FRM) loan so you can choose wisely.The Adjustable Rate Mortgage (ARM)The adjustable rate mortgage or ARM is also known as a variable rate mortgage where the interest rate is adjusted periodically based on prevailing economic indices. The basic features of the ARM which you must look into are: initial interest rate, adjustment period, conversion, interest rate caps, margin, negative amortization, and prepayment penalties. Do not be intimidated with those terms because you can always figure out their effects on your intended loan by using the many online financial calculators.The Fixed Rate Mortgage (FRM)This may be the type of mortgage loan you are more familiar with, something that your parents might have had. As the name implies, interest rate on the FRM loan remains unchanged for the whole term of your loan. Common terms of mortgage loans run for 15 or 30 years.Choosing Between the ARM Loan and the FRM LoanYour choice between the two modes of interest rates will depend on which you value more: the stability of the fixed rate mortgage or the flexibility of the adjustable rate mortgage. It seems that more people favor FRM loans because the interest rate is locked in for the entire life of the loan. People generally would want to feel safe with their mortgage payments, paying the same amount for the rest of the loan term regardless of how the interest rate fluctuates in the financial market.Some borrowers fear the risks associated to ARM loans. Since the interest rate is tied to economic indices, there is always that likelihood of the interest rate increasing. And if that happens, their monthly payments will also increase for sure. Then again, the interest rate can go down anytime if the economic conditions become more favorable. As a result, monthly payments will be lower.According to financial experts, it is advisable to opt for the adjustable rate mortgage if you do not have any plans of keeping the loan for its full term, meaning if you intend to sell your house anytime before paying it off.To help you determine which of the two — the ARM loan or FRM loan — is the better option for your particular situation, you can browse the Web and access one of the many sites that offer free financial calculators. Use them to compare the two modes of interest for you. The figures you can get from those sites should give you an indication of how your monthly payments will look like if you go for the surer fixed rate mortgage or the more flexible adjustable rate mortgage.

Education – Fundamental Right of Every Child

“Education is a human right with immense power to transform. On its foundation rest the cornerstones of freedom, democracy and sustainable human development.”
-Kofi Annan

Education is an act or experience that has a formative effect on the mind, character or physical potential of an individual. A vital element to balance the societal factors, education contributes to the economic development of a country. Countries without educated population cannot foresee and implement the best policies necessary for the growth of an otherwise developing country.

The battle to make elementary education imperative for everyone was started by the great son of India, Gopal Krishna Gokhale about hundred years ago. He urged before the Imperial Legislative Assembly to confer upon the Indians the Right to Education. It was only after ninety years in August 2009 that the Right of Children to Free and Compulsory Education Act was enacted by the Parliament.

According to this act, education is declared as a fundamental right for all children of the age group of 6 to 14 years, irrespective of any caste, color or creed. The Right to Education provision eliminates discrimination in the educational system at all levels, thereby, setting standards. The fundamental right to education is explicitly set out in Article 26 of the Universal Declaration of Human Rights and Article 14 of the International Covenant on Economic, Social and Cultural Rights. This act also ensures that private school needs to reserve at least 25 percent seats for the students of weaker section.

However, the fundamental right to education can only be considered accomplished when it strictly adheres to the “4A” components, which precisely refers to Availability (free education), Accessibility (non-discriminatory system), Acceptability (culturally acceptable content) and Adaptability (evolve with changing times).

The free and compulsory education gives children the required sense of independence and empowers them to make a respectful livelihood on their own. One of the recent initiatives of the Indian Government launched in 2001, Sarva Shiksha Abhiyan (SSA), universalizes the elementary education by community-ownership of the school system. It aims at allowing children to learn and become proficient in their natural environment in a manner which allows human fulfillment in a holistic sense. The scheme under the fundamental right of education also include facilities like free school books, uniform and mid day meal.

Role of the Parents

A child’s school years plays an imperative role in his overall development process and future growth. So, it becomes integral for the parents to get actively involved in their child’s activity. And as a responsible parent, their priority should be towards providing the best education to their children irrespective of any law.

Role of the State

The State is the chief guardian where the Right to Education act is concerned. It functions as a crucial contributor in regulating the provisions of education. Conventionally, education was regarded as the primary duty of parents, but with the rise of education system, the role of parents has diminished and has become a larger responsibility which is why it has become a mandatory rule for the state government to scrutinize the proper implementation of the legislative act. With regards to realizing this particular fundamental right, the World Declaration on Education for All, adopted at the 1990 World Conference on Education states that the “partnership between government and nongovernmental organizations, the private sector, local communities, religious groups, and families” are necessary.

With this, the struggle to get access to education has ended. But to implement the act in a better way, greater awareness among the citizens is required so that its provisions can be clearly understood and incorporated by all institutions, thereby, paving the way for children to become glorious pillars of tomorrow to ensure a bright future.


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