Sentences with phrase «than fixed rates because»

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

Variable interest rates are different than fixed rates because they can change on a regular basis.

Not exact matches

Such rates will generally be higher than what home buyers currently pay, not only because banks now offer substantial discounts from posted rates, but also because many buyers (40 % according to a July 2011 TD Bank report) take mortgages with variable rates, which are lower than fixed rates at least 85 % of the time.

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.

The initial interest rate on a floating - rate security may be lower than that of a fixed - rate security of the same maturity because investors expect to receive additional income due to future increases in the floating security's underlying reference rate.

Adjustable - rate mortgages are popular because interest rates are typically cheaper initially than long - term, fixed - rate mortgages, such as the 30 - year mortgage.

Because they can go up or down, variable rates entail more risk than fixed ones.

A fixed - rate mortgage is generally a safer bet than an adjustable - rate mortgage because you know what your interest rate will be for the length of the loan and your payments will stay the same for the duration of the mortgage.

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.

Because bondholders receive a fixed interest rate and get paid before stockholders, bonds are safer investments than stocks.

That's because a 15 - year fixed mortgage usually comes with a lower rate than a 30 - year fixed one.

Floating - rate securities The initial interest rate on a floating - rate security may be lower than that of a fixed - rate security of the same maturity because investors expect to receive additional income due to future increases in the floating security's underlying reference rate.

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

While today's low rates make the monthly payments on a 15 - year fixed rate refinance lower than ever before, the payments are higher than with a 30 - year loan because you are paying off the loan in half the time.

If you have less than two years remaining on your adjustable rate mortgage before it becomes variable, I highly recommend you refinance today or before the fixed rate ends because ARMs are tied to LIBOR rates once they are variable, and LIBOR rates have surged higher.

Consider You may pay more for your total Medical School Loan cost because a fixed interest rate is usually higher than a starting variable interest rate.

Consideration You may pay more for your total MBA Loan cost because a fixed interest rate is usually higher than a starting variable interest rate.

And in that time, you'll save a ton on interest, because ARM interest rates are typically lower than that of fixed - rate mortgages.

Lower mortgage rates: One of the main reasons many homeowners consider ARMs for a refinancing is because they have lower interest rates than fixed - rate mortgage products.

While this might not seem like a crazy boost from the 2.96 % yield of the fixed income ETF that I just discussed, it's larger than it seems because dividends are taxed at a favorable rate compared to the interest income generated by bonds.

The monthly mortgage payment attached to a 30 - year fixed - rate mortgage is lower than it is with a 15 - year fixed - rate mortgage because payments are spread out over a longer number of years.

Fixed interest rate loans are generally more expensive because their rates are often higher than variable rate loans.

Of course, because you are writing in the money calls there is no upside potential for capital appreciation — this is purely a yield play designed to do better than treasury rates for fixed income investors.

An adjustable - rate mortgage, or ARM, is attractive because interest rates are initially lower than interest rates on a fixed - rate mortgage.

ARMs are often attractive to homebuyers because they usually begin with lower interest rates and payments than fixed rate mortgages.

However, because of your lower payments up front, even with the higher payments at the end of the loan, you would have still paid less than using a fixed rate loan.

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 useful for borrowers because the introductory rate is usually lower than a fixed rate at the time of purchase.

The drawback, however, is that because U.S. government bonds are regarded as the world's safest fixed - income investments, the interest rates they pay investors are lower than those of corporate bonds.

However, because federal student loans issued as of July 2006 have fixed rates, «There is no financial benefit to consolidating federal loans, other than having a single monthly payment and access to alternative repayment plans,» Mark Kantrowitz, publisher of FinAid, told Forbes.

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.

Because of the intrinsic interest rate risk, long term fixed rate loans will usually to have a higher interest rate than a short term loan.

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.

Consideration You may pay more for your total student loan cost because a fixed interest rate is usually higher than a starting variable interest rate.

One reason why an ARM is inexpensive is because the buyer absorbs more risk than with a fixed - rate mortgage.

Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses.

Lots of mortgages are higher than prime, and many people choose them because they feel more secure with the fixed rates over a term, or, on insured mortgages, the lender requires a fixed term.

Because fixed rate loans create some interest rate risk for the lender, fixed interest rates tend to be higher at the beginning of the loan than comparable variable rate loans.

That's because the initial rate on a rate - capper mortgage is higher than what you'd get if you negotiated the best possible rate on a stand - alone variable mortgage, and if rates zoom up, your cap will be higher than what you could have originally negotiated on a stand - alone fixed mortgage.

However, that's generally less useful than it may sound because such fixed - rate conversions are usually at a significantly higher rate than the HELOC.

That's probably because 5 - year variable rates have been significantly lower than 5 - year fixed rates and look set to remain that way for the foreseeable future.

HELOCs typically have a lower initial interest rate than traditional fixed - rate equity loans; however, because HELOCs have variable rates, your rate could rise without warning.

One of the biggest reasons that ARMs are a great option is because they have a lower fixed rate than those of traditional loans in the first few years of the loan.

Because fixed rates increase risk for lenders, fixed interest rates tend to be slightly higher than comparable variable rate loans.

When interest rates are low, fixed - rate loans are generally not that much more expensive than adjustable - rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Considerations You may pay more for your total loan cost because a fixed interest rate is usually higher than a starting variable interest rate.

While a variable rate may be lower than a fixed rate, it is important to keep in mind that there are risks associated with a variable rate because rates could increase at any time.

When a borrower chooses to get a variable rate, it is usually because the variable rate being offered is lower than the available fixed rate — at least at the beginning of the loan.

But interest rates are usually lower than on notice and fixed savings accounts, because you pay for the flexibility to withdraw your cash at any point.

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.