Sentences with phrase «interest rate index»
Interest rates offered by lenders may depend on your credit profile, loan term, changes to underlying interest rate index, and other factors.
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Interest rates for a Reverse Mortgage float on a base of an established benchmark interest rate index and adjust periodically within maximum allowed adjustments and within interest rate caps.
At a scheduled time, the floating rate is adjusted to the current interest rate index plus the spread.
We may select a new interest rate index if the prime rate is not available.
A floating interest rate has two parts: one is a fixed rate known as the spread and the other is a variable rate based on the benchmark interest rate index.
Most lenders use either the 1 - Month LIBOR (London Interbank Offered Rate), 3 - Month LIBOR, or Prime Rate as their base interest rate index for variable rate loans.
Rates may increase or decrease over time based on a pre-selected interest rate index.
A variety of factors influence private student loan interest rates, including the type of loan, the credit history of the borrower and cosigner (if applicable), whether it is a fixed or variable rate loan, the base interest rate index used, the repayment term chosen, and whether principal and / or interest payments are deferred.
The bond's interest rate is tied to a benchmark interest rate index like the LIBOR, the federal funds rate, or a specific duration U.S. Treasury bond yield (in the case of Treasury floating rate notes).
For the annuity numbers, the calculator defaults to the 2.125 % annuity interest rate index that was in effect as of October, 2017.
In the case of Adjustable Rate Mortgages (ARMs), the rate on your mortgage may go up or down depending on the prevailing interest rates index.
One of the biggest problem loans has been what the mortgage industry calls the «exploding ARM,» a loan that after a short low rate period adjusts upward without regard to the direction in which interest rate indices are moving.
Variable interest rates are calculated based off an underlying interest rate index.
When an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is an «Indexed Universal Life» contract.
Rather than paying a fixed rate of interest, floating - rate securities offer interest payments which reset periodically, with rates tied to a representative interest rate index.
Rates may increase or decrease over time based on a pre-selected interest rate index.
A variable interest rate will be based upon an interest rate index (see above), which will be associated with the bank's cost of capital.
A margin, which is an amount set by the bank based on your creditworthiness, is added to the interest rate index.
According to the Federal Reserve, some lenders will offer a teaser rate, which is lower than the sum of the margin plus the interest rate index.
For example, if your 3/1 ARM has a 3 percent margin and the interest rate index is 5.4 percent when the interest rate is scheduled to change, the new rate would be 8.4 percent.
After the initial fixed period, the new, adjustable rate, which changes annually, is tied to an interest rate index that moves based on a variety of economic and financial market factors.
Over time the underlying interest rate index will move up and down with the economy.
An underlying interest rate index is a benchmark of sorts.
If these interest rate indices move up in the future, so will the rate on a variable loan.
In short, variable interest rate loans have interest rates that change with some underlying interest rate index.
The 7 percent you pay is not tied to the economy or any underlying interest rate index.
A variable interest rate will be based upon an interest rate index (see above), which will be associated with the bank's cost of capital.
While the interest rate index can change over time for an adjustable interest rate loan, the margin can not change and stays the same throughout the loan term.
After that, your rate changes based on an interest rate index chosen by the bank.
The main disadvantages of Fixed Rate Mortgages are; you will need to be paying the same interest rate even if there is a fall in the interest rate index.
Interest rates offered by lenders may depend on your credit profile, loan term, changes to underlying interest rate index, and other factors.
A loan with a variable interest rate, such as a private student loan, will be dependent on the prime rate or the interest rate index.
Payments into the policy above the premium are credited to the cash value and the cash value will be credited with interest (usually using an interest rate index).
It can remain at one rate for a year, then can change based on an interest rate index chosen by your bank.
Interest rates offered by lenders may depend on your credit profile, loan term, changes to underlying interest rate index, and other factors.
An interest rate index for commercial and residential loans.
While the interest rate index can change over time for an adjustable interest rate loan, the margin can not change and stays the same throughout the loan term.