To me there is a significant distinction between the economic impacts
of changes in interest rates in contrast to how it might affect the valuations of the individual companies I am specifically invested in.
(The yield difference between HYGH and HYG depends on the absolute level of interest rates as well as the
rate of change in interest rate movements, according to BlackRock.)
These changes are not significantly affected by economic developments, with the
exception of changes in the interest rate forecast on federal employees» future benefits, such as pensions, death benefits, etc..
The interest rate will be adjusted periodically based on the index rate plus a margin (your rate will be equal to the index rate plus the margin, rounded to the nearest one - eighth of one percentage point, unless your interest rate cap limits the
amount of change in the interest rate).
The steeper slope of the trend line indicates the share of respondents planning to buy a home is more responsive to the level of consumer confidence than
expectations of changes in interest rates (either up or down).
Adjustable Rate Mortgage (ARM) A mortgage loan that is adjusted on the
basis of changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender.
A mortgage is reamortized when the way that the remaining balance is repaid is recalculated because
of a change in the interest rate, the balance or the time you have to repay the mortgage.