Sentences with phrase «long period of high interest rates»

Not exact matches

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.

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.

That's because the 30 - year option came with a higher interest rate from day one, and the homeowner paid that higher rate over a longer period of time.

Longer ‐ term bonds carry a longer or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to incLonger ‐ term bonds carry a longer or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to inclonger or higher duration than shorter ‐ term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to increase.

That is the idea behind a bond ladder: Basically each year you buy one set of long - term bonds with a fixed high paying interest rate and then stagger them over a long period of time.

These numbers will likely be different for each franchisee, as you may decide to make more of a down payment (which would lower your payments), you may decide to finance your equipment over a longer period of time (which will also lower your payments), and you may have to pay a higher interest rate (which would increase your payments).

With a normal yield curve, bond buyers essentially demand a higher rate of interest in order to lend money for 30 years than they will to loan money for 30 days since they will be locking up their money for a longer period of time.

The problem with traditional lenders is that the risk of having an application for a $ 2,000 unsecured personal loan rejected is higher, the interest rates to pay should the application be successful is higher and the period to wait for news of either is longer.

Secured home improvement loans are usually available at slightly lower interest rates, are usually meant for higher amounts, and can be repaid over a longer period of time.

Carry Trading: Carry trading, or simply «the carry trade» as it is called, is the strategy of simply buying a high interest - rate currency against a low interest - rate currency and holding the position for what is usually a long period of time.

Typically you can receive higher interest rates on a certificate if you invest for a longer period of time.

In my opinion, a renovation loan is a much more wise financial choose over charging up high interest rate credit cards to make the changes over a longer period of time.

That's because the 30 - year option came with a higher interest rate from day one, and the homeowner paid that higher rate over a longer period of time.

A Certificate of Deposit (CD) account is also a good choice as they can offer slightly higher interest rates as long as you don't withdraw any money for a specified period of time (usually 1,3 or 5 years).

Notice accounts sometimes pay higher rates of interest than easy access deals, and the longer the notice period, usually the higher the rate.

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.

Try making that 18 years, and you get an idea of how painful it can be to hold long - term bonds during a period of rising interest rates when new bonds are being issued with higher coupon rates.

The excessively high rate of inflation in education field means that compound interest for a long period of time becomes a necessity.

It can be advantageous to purchase them if you can only get a high interest rate and you plan on paying off your mortgage over a long period of time.

The benefit of staggering your long - term bond purchase is that even though all your bonds will mature during the same period, as you are purchasing the bonds at different periods, you will be able to get around the times when interest rates are high and bond values and low and buy bonds when there are no risks.

CDs, or certificates of deposit, are a great long term savings strategy, offering higher interest rates than a normal bank account in exchange for a commit to leave the money in the account for a set time period.

A longer term for a bond can maintain an investor's income through a period of low interest rates, but will additionally inflate your money away during a period of high inflation.

Certificates of deposit may be a good fit for those who seek a higher interest rate yield and do not need access to the funds for a longer period of time.

To hold rates for longer periods of time, it typically requires more points or higher interest rates.

Over the life of the loan, this is a more costly option, due to the deferment period, longer repayment term, and higher interest rate

In a falling interest rate environment, investors want to lock in a higher interest rate for a longer period of time, which boosts long - term bond prices.

Slightly higher rates are no reason to panic because the Bank of Canada expects interest rates to stay low for a long period.

That is the idea behind a bond ladder: Basically each year you buy one set of long - term bonds with a fixed high paying interest rate and then stagger them over a long period of time.

One of the best is the Citi Diamond Preferred card, which includes an exceptionally long 21 - month 0 - percent period on new purchases — this gives you lots of wiggle room to pay off your balance before the high interest rate kicks in.

That's because the 30 - year option came with a higher interest rate from day one, and the homeowner paid that higher rate over a longer period of time.