The dollar / yen is likely to
fall unless there are clearer signs
of a
rate hike by the Fed,» said Shinichiro Kadota, senior FX and
rates strategist at Barclays Securities Japan.
For example, if the Bank gets new information that leads it to expect inflation will
fall below target
unless it cuts the overnight
rate of interest, and at the same time gets new information about fiscal policy, the Bank might decide to leave the
rate of interest where it is.
If interest
rates rise, and the market value
of your bond
falls, you will not feel any effect
unless you change your strategy and try to sell the bond.
FRM pros and cons: + Peace
of mind that your interest
rate stays locked in over the life
of the loan + Monthly mortgage payments remain the same - If
rates fall, you'll be stuck with your original APR
unless you refinance your loan - Fixed
rates tend to be higher than adjustable
rates for the convenience
of having an APR that won't change ARM pros and cons: + APRs on many ARMs may be lower compared to fixed -
rate home loans, at least at first + A wide variety
of adjustable
rate loans are available — for instance, a 3/1 ARM has a fixed
rate for the first 36 months, adjustable thereafter; a 5/1 ARM, fixed for 60 months, adjustable afterwards; a 7/1 ARM, fixed for 84 months, adjustable after - While your interest
rate could drop depending on interest
rate conditions, it could rise, too, making monthly loan payments more expensive than hoped How is your APR determined?