What Was a Flexible Payment ARM?

An adjustable-rate mortgage (ARM) with a monthly payment that can change, based on changes in the index used to calculate the interest rate. The payment can increase or decrease, but will never increase more than the fully indexed rate plus the margin. What happens after a 7 year ARM? Assuming you’re referring to a 7/1 … Read more

Reinsurance: Insurance for Insurers.

Reinsurance: Insurance for Insurers Why do insurers use reinsurance? There are several reasons for insurers to use reinsurance. One reason is to protect themselves from the financial ruin that could occur if they had to pay out a large number of claims at one time. This is known as catastrophe protection. Another reason is to … Read more


Microcredit is a type of financial service that offers small loans to entrepreneurs, farmers, and other low-income individuals who lack access to traditional banking services. Microcredit loans are typically used to finance small businesses or to cover basic needs such as housing, education, or medical care. Microcredit programs typically charge interest rates that are lower … Read more