Sentences with phrase «of a variable rate loan»

The price of a variable rate loan will either increase or decrease over time, so borrowers who believe interest rates will decline tend to choose variable rate loans.

But the downfall of a variable rate loan is that your rate can go up or down over time.

Whether you personally have been hurt is a separate question with an answer depending on the details and timing of variable rate loans you've taken out over the past decade.

That's particularly true of variable rate loans that move with the prevailing interest rate.

Because the borrower assumes some of the risk of increasing interest rates, lenders tend to charge lower interest rates at the start of variable rate loans in comparison to fixed rate loans.

The upside of a variable rate loan is that you might pay less in interest than a fixed rate loan if the index rate stays low.

It is entirely possible that you will ultimately pay more interest over the life of a variable rate loan than you will with a fixed rate loan.

The price of a variable rate loan will either increase or decrease over time, so borrowers who believe interest rates will decline tend to choose variable rate loans.

Accordingly, the APR is subject to increase or decrease due to factors such as changes in the interest rate of variable rate loans or changes in principle due to the capitalization of interest.

The Hybrid also helps reduce the uncertainty of a variable rate loan by fixing the interest rate for the first five years of repayment, and then switching to a variable rate for the remainder of the loan period.

The Hybrid also helps reduce the uncertainty of a variable rate loan by fixing the interest rate for the first five years of repayment, and then switching to a variable rate for the remainder of the loan period.

When deciding which type of rate to choose, use the lender's loan repayment calculator to estimate the savings between a variable rate and a fixed rate loan, and whether the estimated savings is worth the additional risk of a variable rate loan.

Portability is usually only a feature of variable rate loans.

Accordingly, the APR is subject to increase or decrease due to factors such as changes in the interest rate of variable rate loans or changes in principal due to the capitalization of interest.

Accordingly, the APR is subject to increase or decrease due to factors such as changes in the interest rate of variable rate loans, changes in principle due to the capitalization of interest or presence of a cosigner.