Sentences with phrase «account differences in interest rates»

Yield curve strategies are more sophisticated interest rate anticipation strategies that take into account the differences in interest rates for different terms of bonds, called the «term structure» of interest rates.

Not exact matches

In addition, a small difference in interest rate means a lot more to your bank account when the loan is largeIn addition, a small difference in interest rate means a lot more to your bank account when the loan is largein interest rate means a lot more to your bank account when the loan is larger.

• Unlike in the U.S., underwriting standards for qualifying mortgage borrowers in Canada have been maintained at prudent levels resulting in mortgage borrowers here being much more creditworthy; • Canadian mortgage lenders never offered low initial «teaser» rate mortgages that led to most of the difficulties for mortgage borrowers in the U.S.; • Most mortgages in Canada are held by their original lender, not packaged and sold to third parties as is typical in the U.S., and consequently, Canadian mortgage lenders have a vested interest in ensuring that their mortgage borrowers are creditworthy and not likely to default; • Only 0.3 % of Canadian mortgages are in arrears versus 4.5 % in the U.S. and what even before the start of the U.S. housing meltdown two years ago was 2 %; • Canadians tend to pay down their mortgage faster than in the U.S. where mortgage interest is deductible from taxes, which encourages U.S. homeowners to take equity out of their homes to finance other spending, a difference that is reflected in the fact that in Canada mortgage debt accounts for just over 30 % of the value of homes, compared with 55 % in the U.S.

«Many people fixate on interest rates,» she said, «but the truth is that even with a relatively large amount in your savings account, there is little difference in interest earned each month between a 0 % rate and a 1.00 % rate.»

This model is not adjusted to account for the differences in the interest rate sensitivities of long - term treasuries and corporate bonds (refer to the Hallerbach and Houweling, and Asvanunt and Richardson papers listed below).

Term and credit risk based 2 - factor model where the term risk premium is calculated as the difference between long - term treasuries and treasury bills and the credit risk premium is calculated from the long - term corporates and long - term treasuries while accounting for the differences in the interest rate sensitivities of long - term treasuries and corporate bonds (refer to the Hallerbach and Houweling, and Asvanunt and Richardson papers listed below).

Now, take this same $ 2,000 per year (approximately $ 166 per month) and put it in a savings account with a one percent interest rate and you'll notice a big upsetting difference.

Banks make their money off the difference between what they are able to charge for loans and credit cards in the form of interest rates and the rates they pay to savers for keeping their money held in an account.

However, it's interesting that at lower growth rates, the difference in the longevity of the accounts pretty much disappears.

Interest rate makes a difference to your life only if you intend to keep an extremely high balance in your account.

REIT funds may be subject to other risks including, but not limited to, changes in real estate values or economic conditions, credit risk and interest rate fluctuations and changes in the value of the underlying property owned by the trust and defaults by borrowers.In addition to normal risks associated with equity investing, international investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, and from adverse political, social and economic instability in other nations.