Sentences with phrase «than the fixed rate of»

Even when the variable portion changes, the rate may be different because of the fixed rate of your bond may be different than the fixed rate of a new bond.

Not exact matches

Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.

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.

These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held outside of a registered account.

Economic factors like consumer confidence, financial obligations, and delinquencies are all improving and the consumer may be more insulated than investors think from a back - up in yields, given 75 % of their financial obligations are in the form of a mortgage, close to 90 % of all mortgages are 30 - year fixed, and the average mortgage is termed out at the lowest rate ever... Taking these factors into account, we generally think it pays to remain sanguine.»

The appeal of variable - rate loans is that they usually start out with interest rates that are between one and two percentage points lower than fixed - rate loans.

The new interest rate can be lower or higher than the weighted average of the old loans and can be fixed (the interest rate won't ever change) or variable (the rate changes based on the market conditions).

Since the length of the loan term is longer, 30 - year fixed mortgage rates tend to be higher than 15 - year fixed mortgage rates.

FLIA will invest in fixed - and floating - rate bonds from the full range of governmental and corporate issuers representing developed markets other than the U.S..

Seeks to provide a high level of current income, while providing lower volatility than a fund that invests in fixed - 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.

Since a larger share of deposit rates are fixed than are loan rates, this will overstate the effect on cash flows over longer time horizons, though the extent of this bias has not necessarily changed over time in an obvious way.

Cash alternatives, such as money market funds, typically offer lower rates of return than longer - term equity or fixed - income securities and may not keep pace with inflation over extended periods of time.

If the Bank of Canada had kept the exchange rate fixed at - say - 0.85 USD, the prices that Canadian oil producers receive would be about 15 % higher than what they get now.

The important thing to remember is, all other things being equal, a lower student loan interest rate is better than a higher one — but you need to consider all of the terms of the loan including whether the rate is fixed or variable and what your loan repayment options are to ensure you get the best overall deal.

As the IRS is focusing on tax compliance for the years 2013 - 15, it appears that the $ 20,000 value will be calculated based on the price of bitcoin on the date (s) of the relevant transaction (s) rather than a fixed bitcoin exchange rate or today's price.

If you are doing well financially and find yourself in a position to pay - off your mortgage sooner rather than later, then switching your fixed - rate mortgage to an adjustable - rate mortgage can be a powerful way to save you thousands of dollars in paying off your home.

Persistently low interest rates, weak inflation and a lack of supply relative to demand for bonds leaves Rieder advocating for equities rather than the fixed income market.

Feature that I will request from The PC team are: — compare multiple scenarios (more than 2)-- show internal rate of return (this is currently fixed based on the asset allocation you have today.

This makes adjustable rate mortgages more affordable, at least in the short term, as the out of pocket expenses are less than if you were to finance your house with a fixed rate mortgage.

It stipulates a set period of time where your interest rate will be lower than its fixed - rate counterpart.

Most dangerously of all, the bulls think that China can fix its problems while growing at 7 % or 7.5 % — which is better than the 8 % they used to think is the minimum acceptable, although worse then the 6 % they will undoubtedly cite next year as the minimal acceptable growth rate.

Managed IT services, those that provide services to small businesses at fixed and affordable rates and aim to prevent rather than react to problems, are proving to be the route of choice for small business owners.

For instance, the conventional 30 - year fixed rate of 4.10 % with 0.05 purchased points would otherwise be 4.15 % — 15 basis points higher than the standard rate at most US mortgage lenders today.

«We had anticipated a rebound in activity from earlier this year when the harsher than normal winter weather took hold, but the biggest drop in fixed mortgage rates in almost four years and resulting improvement in affordability also gave the Canadian housing market a boost of extra energy.»

Yet on the whole, given their positive experience both with receiving more income than they could get from the fixed - income sector in recent years and the potential for capital appreciation over the long haul, dividend stocks and the ETFs that own them have demonstrated their long - term value to the investors who've gravitated toward them during the low - rate environment of the past decade.

For example, a fixed rate mortgage that costs no more than 25 % of your income, to buy your first house makes sense.

Variable rates are usually lower than fixed rates, but they can rise over the life of the loan.

This means that if your total monthly debt — including the mortgage payment — uses up more than 43 % of your monthly income, you could have trouble qualifying for a 30 - year fixed - rate mortgage.

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.

So even though you're assuming a certain level of risk that your rate could go up, you're also getting a rate that's lower than the one you'd get on a fixed rate student loan.

You might pay more over time than the variable rate (assuming the variable rate wouldn't increase beyond your fixed rate), but it might be worth it for the peace of mind.

If you get an offer for a variable rate that's a lot lower than your fixed rate offer, you could still save money over the life of the loan.

Overall, implied volatilities of foreign exchange rates have exhibited a less clear trend than those observed in equity and fixed - interest markets.

Fixed - rate loans for housing have fallen by less than those for small businesses since they had also risen by less during the phase of rising yields in capital markets in 1999.

One of the advantages to this kind of mortgage is that the initial interest rate is generally lower with a 5/1 ARM than a standard fixed - rate mortgage.

The People's Bank of China (PBOC) set the yuan midpoint rate at 6.5646 per dollar, 0.5 % weaker than the previous day's fix.

In the case of adjustable rate mortgages being refinanced, the tangible benefit would be moving into a fixed interest rate even if that rate is higher than the one currently being paid on the mortgage.

And if the fiscal problem becomes unstable — more deficit to finance than security markets will allow, the Fed will obey its political masters and finance the deficit by a hyper - inflation, or hyper - tax, as a burgeoning inflation simply taxes all fixed dollar wealth — bonds, dollars, life insurance values, etc. — by the rate of price level increase.

15 - year fixed - rate mortgages have become increasingly popular as interest rates have dropped, but the deductibility of a 15 - year loan is decidedly less than that of a 30 - year loan.

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.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

It is important to note that since short - term rates are usually lower than long - term rates, the initial coupon of a floater is typically lower than that of a fixed - rate note of the same maturity.

This option comes with a lower interest rate than that of a fixed - rate loan.

Fixed rates are typically a tad higher than variable rates — but they are fixed, meaning they won't go up or down over the life of your Fixed rates are typically a tad higher than variable rates — but they are fixed, meaning they won't go up or down over the life of your fixed, meaning they won't go up or down over the life of your loan.

This statistic, which is based on decades of data, suggests that many U.S. home buyers would be better suited to an adjustable - rate mortgage than a fixed.

These types of personal loans allow for fixed monthly payments and generally have lower interest rates than credit cards.

Since then, fixed business rates have increased, though by less than the rise in the cost of funding these loans.

Wages have not grown as fast as prices, and the majority of UK homeowners have variable rate mortgages, rather than fixed - rate.

Cons: The primary negative associated with investment grade floaters is that when issued they generally offer current yields that are significantly lower than a typical fixed rate bond of the same maturity offered by the same issuer.