Sentences with phrase «risk on a variable rate loan»

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Rates on variable - rates loans are lower than fixed - rate loans because you, not the lender, are taking on the risk that rates will incrRates on variable - rates loans are lower than fixed - rate loans because you, not the lender, are taking on the risk that rates will incrrates loans are lower than fixed - rate loans because you, not the lender, are taking on the risk that rates will incrrates will increase.

For variable - and fixed - rate loans offered by private lenders, interest rates will typically depend on the length, or term of the loan, and the perceived credit risk of the borrower.

Indicator rates on variable - rate business loans have been largely unchanged over the past six months, although the average interest rate paid by small business borrowers on variable - rate loans — which includes indicator rates plus applicable risk margins — has continued to fall.

Most caps on variable interest rate student loans are roughly 8 - 9 %, which can help decrease the risk of a rising interest rate.

While the average indicator rate on large business variable - rate loans, at 8.0 per cent, is now higher than the corresponding rate for small businesses, the all - up borrowing cost to large business remains lower than for small businesses since customer risk margins for the former are, on average, finer than those for the latter.

Although you can get a lower initial rate on a variable - rate loan, you assume the risk of future rate increases.

With private student loans, the interest rate depends on the borrower or cosigner's credit risk, and whether you'd rather have a fixed - rate or variable - rate loan.

Since lenders bear the interest rate risk of a fixed rate loan (the risk of rates rising), interest rates are generally initially higher on a fixed rate loan than on a variable rate loan.

Although you can get a lower initial rate on a variable - rate loan, you assume the risk of future rate increases.

Variable rates are a risk, because whilst they often start at lower rates than fixed term loans, and could go down, they could easily go up, increasing the amount of interest paid on a loan considerably.

With private student loans, the interest rate depends on the borrower or cosigner's credit risk, and whether you'd rather have a fixed - rate or variable - rate loan.

The benefit to a variable interest rate from a private student loan is that if you're willing to take a risk, you could be saving significantly on total interest paid.

Choosing a line of credit versus refinancing your mortgage, or picking between a variable - rate loan versus one with a fixed rate, will depend on your own individual needs and how well you tolerate risk.

For instance, if the rate on some or all of your loans is variable, then you run the risk of having the amount that you owe increase in the future.

Rates on variable - rates loans are lower than fixed - rate loans because you, not the lender, are taking on the risk that rates will incrRates on variable - rates loans are lower than fixed - rate loans because you, not the lender, are taking on the risk that rates will incrrates loans are lower than fixed - rate loans because you, not the lender, are taking on the risk that rates will incrrates will increase.

For variable - and fixed - rate loans offered by private lenders, interest rates will typically depend on the length, or term of the loan, and the perceived credit risk of the borrower.