Not exact matches
«The cumulative
effect of interest
rate hikes is going to begin mounting,» said Greg McBride, Bankrate.com's chief financial analyst, particularly
on variable -
rate loans such as credit cards, home equity lines of credit and adjustable -
rate mortgages, which could rise within one to two statement cycles.
The rise in short - term market interest
rates ahead of the move in monetary policy had very limited
effect on the interest
rates that intermediaries charge for
variable -
rate loans, notwithstanding the fact that the marginal cost of banks» funding of such
loans is related to bill yields.
The former
effect reflects the narrowing of margins
on housing and small business
loans: the
rate on standard
variable rate housing
loans has fallen by 1.3 percentage points more than the cash
rate since mid 1996; in 1998, the average
variable -
rate on small business
loans has fallen by 0.7 of a percentage point relative to the cash
rate.
Competition spread more openly to the market for existing borrowers in mid 1996 when banks cut the interest
rate on standard
variable -
rate loans independently of any
effect on funding costs from a change in monetary policy.
(A) The term and principal amount of the
loan; (B) An explanation of the type of mortgage
loan being offered; (C) The
rate of interest that will apply to the
loan and, if the
rate is subject to change, or is a
variable rate, or is subject to final determination at a future date based
on some objective standard, a specific statement of those facts; (D) The points and all fees, if any, to be paid by the borrower or the seller, or both; and (E) The term during which the financing agreement remains in
effect.