Sentences with phrase «because interest payments»

Bonds selling above face value because their interest payments are higher than prevailing interest rates.

Rising interest rates alone would balloon the federal deficit, because interest payments on the massive outstanding government debt would skyrocket from today's artificially low levels.»

However, the fund's total return over that period was +1.62 %, because the interest payments more than offset the price drop.

Because the interest payments are cumulative, any missed payments are added to future payments, but you will still be temporarily out of pocket.

But that doesn't necessarily mean your investment will lose money overall, because the interest payments from the bonds will offset at least some those losses.

Funding with debt is usually cheaper than equity because interest payments are deductible from a company's taxable income, while dividend payments are not.

It's because interest payments for home equities are tax - deductible.

A CMO may have a tranche A which would be the most secure, because interest payments are prioritized to go to tranche A.

The number of transfers can exceed the number of years in the ladder because interest payments add to the size of the bond account.

And as a result, the cuts would be bigger, not smaller because the interest payments on that debt would be higher.

Other major advantages of this type of financing include putting dollars back on a company's bottom line because interest payments are tax - deductible, which lowers the company's taxable income.

MBS are usually considered a safe investment because the interest payment is secured by the payment of thousands of mortgage payers.

Not exact matches

Downside: Because of the instability in monthly payments, interest rates for this method can be quite costly — between 18 and 30 percent.

Over-valuation doesn't look so severe by this measure because a big component of mortgage payments — interest rates — is very low and incomes have continued to rise over the years.

The over-valuation doesn't look so severe on this basis because a big component of mortgage payments, interest rates, is very low.

Being able to afford the monthly payment shouldn't be the focus because the amount of money spent on interest during those years add up quickly, he said.

And though the company hadn't reported an annual profit since its 2013 fiscal year because of interest payments, its operating income had risen 22 percent, to $ 460 million.

In fact, interest payments relative to GDP actually fell while the debt - GDP doubled because interest rates plunged extraordinarily.

Inflation hurts bond returns because your fixed interest payments aren't worth as much going forward.

Moreover, when you have a high FICO score, the «adjustment» to a conventional mortgage because you are making a low down payment will add 0.25 percent to your interest rate if you make a 5 percent down payment, or 0.75 percent if you make a lower down payment.

This is because most private student loan lenders offer extended repayment plans and variable interest rates that seem lower at the onset of a loan refinance, saving borrowers money on their monthly payment as well as on the total cost of borrowing over time.

With a lower interest rate, payments will be reduced because interest will accrue at lower rate each month.

Borrowers pay more over the life of the loan repayment because of interest accrual in the years when payments are lower.

The total cost of borrowing can be significantly higher for borrowers who select the PAYE program because of interest accrual during periods when income and therefore monthly payments are low.

Because of the high interest rates, you should consider what the monthly payment will be and that you will be able to make it on time for the duration of the term.

It's an interesting play — not least because Rogers will preload it on smartphones that it sells, or because it's a platform that developers can hook into and build on top of via APIs — but it's only possible because of major technology upgrades in Canada that have it ranked the second - leading national market in contactless payment, according to Juniper.

Because there's no need to pay down principal initially, the required payments are lower during the interest - only period.

As a general rule, a short - term loan will have a higher periodic payment, but a lower total interest cost of the loan when compared to a longer - term loan — even if that loan includes a lower interest rate, because the business is paying interest over a longer period of time.

[Central banks] are supportive of these new technologies because they'll improve the payment system... but it won't affect the ability of the Fed to require a certain amount of reserves,» remarked Bernanke about a central bank's ability to curb inflation by altering interest rates.

You take a big risk with variable interest rates, because if rates rise, your loan rate — and your payments and the total interest you pay — can increase substantially.

Because of the way interest is calculated for mortgages, additional payments early on have a bigger impact than later in the life of the mortgage.

Alibaba's interest in WeLab isn't surprising because of its focus on using technology to disrupt the traditional banking industry in China through Ant Financial, its financial services arm, and online payment system Alipay.

This is because SBA - backed loans offer low interest rates, long terms and fixed monthly payments.

Refinancing your mortgage to a shorter term is all about saving money overall because of the lower interest rate and the shorter payment term.

Keep in mind that just because a lender offers you a lower interest rate than you currently pay on your existing student loans doesn't mean your monthly payment will also be lower.

Many borrowers entering plans requiring monthly payments of only a percentage of their discretionary income could afford to pay a greater amount but chose not to because they don't understand just how much more in interest they pay.

Because your rate is not locked in for the duration of the loan, a rising interest rate environment will force the lender to increase your mortgage rate, thus adding to your monthly payment.

Debt can be a terrible thing if not handled properly because it introduces payments that include interest, which is really nothing more than the cost of «renting» money.

Bonds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

It also offers stability and peace of mind because your monthly payment won't change no matter what happens to inflation or market interest rates.

This was interesting because I was currently spending an average of about $ 300 a month on gasoline in my current car... which would equate to my lease payment being half as much as I was previously paying for gas.

The real reason I bought a new car was because not only was the interest rate lower but it came with insurance for if I lost my job they would cover my payments (USAA) I thought this was real important since Im young and im not really secure in any job that I've had.

But because they will make an average of 59 fewer payments — and pay down their loan at a lower interest rate — those borrowers will save an average of nearly $ 19,000 in the long run.

It's important to know this term because your payments must first go toward any outstanding fees and interest before going toward principal.

Maybe you'll want to reduce your long - term interest payments because 15 - year mortgages pay 65 % less mortgage interest over time.

So even with the higher interest rate assigned to the 30 - year loan, the payments are smaller because they are spread out over a longer period of time.

A fixed - rate mortgage is generally a safer bet than an adjustable - rate mortgage because you know what your interest rate will be for the length of the loan and your payments will stay the same for the duration of the mortgage.

Fixed mortgages are easier to understand because the interest rate that they charge never changes, so you can count on monthly mortgage payments remaining constant throughout the lifetime of your loan.

The twice - yearly interest payments also would increase, because they would be based on the new, higher principal amount.

If you currently have a student loan with a very low fixed interest rate, it makes more economic sense to pay only the minimum payments because of the low fixes rate and because of inflation.