Sentences with phrase «higher than fixed rate»

If market interest rates increase to a level higher than the fixed rate, the business would be paying less interest.

Also, a benefit of this option is that your risk is limited because your rate adjustment is capped at 5 % which is about 1.5 % higher than fixed rate loans today.

Since there are no prepayment fees and the hybrid loan starts off with a lower fixed rate than the standard 10 - year loan, this can be a savvy option for borrowers who are confident they will pay their loan off early — hopefully, before the variable rate has a chance to rise higher than the fixed rate.

Most private student loans have variable interest rates that are higher than the fixed rates offered by federal loans.

Depending on the market, however, they may be higher than fixed rates at times.

Not exact matches

Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.

Such rates will generally be higher than what home buyers currently pay, not only because banks now offer substantial discounts from posted rates, but also because many buyers (40 % according to a July 2011 TD Bank report) take mortgages with variable rates, which are lower than fixed rates at least 85 % of the time.

The logistics turned out to be relatively simple: The chain spent roughly $ 60 per store on signage and opted to fix the exchange rate at 12 pesos to the dollar — slightly higher than the going rate — to cover any market fluctuations and banking fees.

A separate report from the Mortgage Bankers Association showed mortgage applications last week rose to their highest level in nine weeks as interest rates on 30 - year fixed - rate mortgages hovered at their lowest level in more than a year.

Borrower 2 saved almost $ 5,000 by going with a fixed rate on Loan B ($ 30,000 for 20 years) even though the initial interest rate was higher than what Borrower 1 secured with a variable - rate loan.

The drawback for fixed rate loans is that their interest rates are typically between 1 % and 2 % higher than variable rates to start off with.

The new interest rate can be lower or higher than the weighted average of the old loans and can be fixed (the interest rate won't ever change) or variable (the rate changes based on the market conditions).

Since the length of the loan term is longer, 30 - year fixed mortgage rates tend to be higher than 15 - year fixed mortgage rates.

If interest rates rise over time due to market fluctuations, then these rates have the potential to be substantially higher than the rates for fixed interest rates loans.

Given that rate volatility will likely remain elevated in coming months, investors may want to look to the high yield sector, which is typically less sensitive to rate movements than other fixed income sectors.

Seeks to provide a high level of current income, while providing lower volatility than a fund that invests in fixed - rate securities.

While a fixed rate loan may have a higher interest rate than a variable rate, you do not have to worry about fluctuations or changes to your payment amount.

If the Bank of Canada had kept the exchange rate fixed at - say - 0.85 USD, the prices that Canadian oil producers receive would be about 15 % higher than what they get now.

Variable rates currently offer lower interest rate options, resulting in additional interest savings, but keep in mind — variable rate student loans are often higher risk for borrowers than fixed interest rate student loans.

The important thing to remember is, all other things being equal, a lower student loan interest rate is better than a higher one — but you need to consider all of the terms of the loan including whether the rate is fixed or variable and what your loan repayment options are to ensure you get the best overall deal.

The average rate on the 30 - year fixed at its highest level in more than four years and is not expected to fall back as it did last year.

1 Interest rates for Fixed and Deferred Repayment Options are higher than interest rates for the Interest Repayment Option.

As in other cities, 5/1 ARM rates were quoted as higher than fixed - rate mortgages at every bank except Third Federal.

For instance, the conventional 30 - year fixed rate of 4.10 % with 0.05 purchased points would otherwise be 4.15 % — 15 basis points higher than the standard rate at most US mortgage lenders today.

Since rising interest rates means the bond's fixed rate is not competitive against newly issued bonds at higher market rates, then it stands to reason that longer - term bonds (those with longer to pay at the lower rate) are going to see their prices fall further than short - term bonds.

Today's 15 - year fixed mortgage rates are also slightly higher than last week, according to Freddie Mac's weekly market survey.

Synchrony Bank offers more than just higher interest rates on fixed deposits.

In the case of adjustable rate mortgages being refinanced, the tangible benefit would be moving into a fixed interest rate even if that rate is higher than the one currently being paid on the mortgage.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

High fixed costs are great when revenues are rising as income grows at a faster rate than sales.

In general, interest rates on a second mortgage will several percentage points higher than for a comparable - sized first mortgage; and second liens can be fixed - rate or adjustable - rate mortgages (ARM).

Starting Oct. 17, all buyers with high - ratio mortgages — less than a 20 per cent down payment — must qualify based on the five - year benchmark posted rate, even if they have negotiated a lower five - year fixed - ate term.

Fixed rates are typically a tad higher than variable rates — but they are fixed, meaning they won't go up or down over the life of your Fixed rates are typically a tad higher than variable rates — but they are fixed, meaning they won't go up or down over the life of your fixed, meaning they won't go up or down over the life of your loan.

For those who plan to finish repayment over a longer period (15 - 20 years), it is less risky to choose a fixed rate loan even though the interest rate will likely be higher than a variable rate loan.

Sallie Mae — Interest rates for Fixed and Deferred Repayment Options are higher than interest rates for the Interest Repayment Option.

You could end up with a higher interest rate down the line than if you had selected the fixed rate option.

While today's low rates make the monthly payments on a 15 - year fixed rate refinance lower than ever before, the payments are higher than with a 30 - year loan because you are paying off the loan in half the time.

Banks» 3 - year fixed housing rates have also moved slightly higher since June, but remain nearly 100 basis points lower than in mid 2002.

If you have less than two years remaining on your adjustable rate mortgage before it becomes variable, I highly recommend you refinance today or before the fixed rate ends because ARMs are tied to LIBOR rates once they are variable, and LIBOR rates have surged higher.

And under the previous government a cleaner paid a higher rate of tax on their wages than a hedge fund manager selling their shares - a gross unfairness that we have fixed.

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These loans can start with a lower initial interest rate than a fixed - rate loan, but the interest rate is variable and can possibly rise after a set period of time, leading to higher monthly payments.

Consider You may pay more for your total Medical School Loan cost because a fixed interest rate is usually higher than a starting variable interest rate.

Indexed annuities are designed specifically to create the possibility of higher interest earnings than traditional fixed rate products and to protect premium (sometimes called principal) from loss due to market downturns, all the while creating a reliable, guaranteed lifetime income.

Your future rate will be based on current fixed - mortgage rates, usually slightly higher than ARMs.

However, do bear in mind that though a fixed interest brings in an element of certainty in your monthly payout (as EMI) such home loans are at least 1 - 2.5 % higher than a floating rate home loan and are on a fixed rate only for a tenure of 3 - 5 years (after which moves to floating rate again).

Consideration You may pay more for your total MBA Loan cost because a fixed interest rate is usually higher than a starting variable interest rate.

Today's 15 - year fixed mortgage rates are also slightly higher than last week, according to Freddie Mac's weekly market survey.

While shopping around for the lowest rate, you will notice that interest on fixed - rate mortgages is almost always higher initially than on adjustable - rate mortgages (see below).

Your new payment must be at least 5 % lower than your old payment, or you must be replacing an ARM with a fixed loan (the new rate can't be more than 2 % higher) or hybrid loan (the new payment can't be more than 20 % higher), or reducing the term of your mortgage, or dropping your interest rate by at least 2 % (if replacing a fixed mortgage with an ARM).