Sentences with phrase «riskier than fixed rates»

Even so, variable rates are sometimes considered riskier than fixed rates because they can fluctuate with shifts of the economic markets.

Not exact matches

Variable interest rate loans are usually offered at lower rates than fixed rate loans, but can be risky because the student loan rates could rise significantly in the future.

Adjustable rate mortgages are riskier than fixed - rate mortgages.

The point is that they are much riskier than a traditional fixed - rate mortgage loan, where the borrower chips away at the principal from day one.

In general, variable rate loans tend to have lower interest rates than fixed versions, in part because they are a riskier choice for consumers.

For those who plan to finish repayment over a longer period (15 - 20 years), it is less risky to choose a fixed rate loan even though the interest rate will likely be higher than a variable rate loan.

This makes an ARM much more risky than a fixed - rate mortgage.

The point is that they are much riskier than a traditional fixed - rate mortgage loan, where the borrower chips away at the principal from day one.

HELOCs generally have variable interest rates which are generally riskier to the borrower than fixed rate loans.

Equities are typically considered to be the riskier of the two asset types (with the exception junk bonds and other lowly rate bonds) and have traditionally generated higher returns than fixed income assets.

Typically the interest rate for fixed rate reverse mortgages is initially higher than the variable rate because these loans are more risky for the lender.

Riskier assets like stocks have a higher rate of expected return so if your time horizon is long enough, don't avoid stocks completely just because they are more volatile than fixed income or cash.

You must make sure that the interest payable on your new consolidated debt is fixed at a rate that you can budget for, as it is too risky getting a variable interest rate loan where the rates could rise and leave you in a more difficult position than you would have been had you not consolidated.

One of the downsides of an ARM is that they are considered to be «riskier» due to the fact that the interest rate will more than likely increase after the initial fixed - rate period ends.

Although variable rates are riskier, they do tend to be lower than fixed rates historically.

It can be risky to sign up for a fixed rate mortgage, however, because if the economy does worse than anticipated, you are stuck with your rate with no variation allowed.

ARMs have better interest rates than fixed rate mortgages, but the payment volatility can make them risky.

Indexed Universal Life hits that sweet spot that fills a lot of people's needs: you get more for your money than you would with a fixed rate universal life policy, but yet it's not as unpredictable and risky as variable universal life.

Typically the interest rate for fixed rate reverse mortgages is initially higher than the variable rate because these loans are more risky for the lender.

Adjustable rate mortgages are riskier than fixed - rate mortgages.

The point is that they are much riskier than a traditional fixed - rate mortgage loan, where the borrower chips away at the principal from day one.