Sentences with phrase «than the interest rate profits»

Since the principal is much higher than the interest rate profits, this means that such loans lose money.

Not exact matches

Carried interest, which is a fund manager's profit, is taxed at the capital gains rate, rather than the higher rate on ordinary income.

Rather than a traditional offsetting relationship at this early point of the tightening cycle, the near - term interest rate outlook and the near - term profits outlook are both negative.

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

Given that China has higher interest rates than the US, in the absence of expectations of a change in the target exchange rate one would expect the forward exchange rate (expressed as yuan per US dollar) to be higher than the spot exchange rate so as to eliminate the possibility of earning a risk - free profit over the term of the contract.

Because credit unions don't lend to make a profit, the interest rates tend to be lower, the fees are usually fewer, there are no origination fees, and the repayment terms tend to be more flexible than the terms offered by traditional lenders.

Companies with solid balance sheets, that have better credit ratings and less debt - to - equity than peers, can weather economic downturns, make opportunistic acquisitions, waste less of their profit on debt interest, and easily absorb unexpected problems and keep moving forward.

So while everyone is walking around with an achy breaky heart trying to figure out how to best mitigate disparate impact's effect on dealer reserve, I envision Federales running around their offices shouting «dy - no - mite» because they figured out dealers make a fair profit from more than interest rates.

Because credit unions don't lend to make a profit, the interest rates tend to be lower, the fees are usually fewer, there are no origination fees, and the repayment terms tend to be more flexible than the terms offered by traditional lenders.

With a USD / ZAR short position, a trader would have made even more profit than initially expected, with the interest rate spread widening from 4.35 % to 9.70 %.

If nominal interest rates increased at a faster rate than inflation, then real interest rates might rise, leading to a decrease in the value of inflation - protected securities.Diversification does not assure a profit or protect against loss in a declining market.

So consider how much banks are truly profiting on your money when a savings account offers you less than 1 % return on your money and the bank creates a loan with a 5 %, 10 % or even 30 % interest rate.

As a result, they often have better interest rates and lower fees than regular, for - profit banks.

Variable - rate loans — Option Adjustable Rate Mortgages (Option ARMs) in particular — were especially attractive, because they carried higher fees than other loans and allowed WaMu to book profits on interest payments that borrowers deferrate loans — Option Adjustable Rate Mortgages (Option ARMs) in particular — were especially attractive, because they carried higher fees than other loans and allowed WaMu to book profits on interest payments that borrowers deferRate Mortgages (Option ARMs) in particular — were especially attractive, because they carried higher fees than other loans and allowed WaMu to book profits on interest payments that borrowers deferred.

The objective is to borrow at interest rates lower than the asset's return, to profit from the differential.

This profit exists because student interest rates are set in a manner that generates greater revenue than is needed to cover the costs of making and servicing a loan.

If the interest rate on your debt is less than the amount your savings earn after tax then, providing you're financially disciplined, you can profit from building up savings and keep the debts.

With capital gains taxed at a lower rate than interest, we advise you to structure your investments to profit from that favourable tax treatment.

Awhile back, Senator Elizabeth Warren accused the federal government of making «obscene» profits on student loans because the interest rates were higher than the government's cost of borrowing money.

Credit unions often pay higher interest rates on deposits than their for - profit rivals, a benefit of returning surplus earning to the business.

In other words, if Lender Smith gets me the loan with the lowest rate, the fewest points and the lowest closing costs I'm interested, even if Smith makes a bigger profit than Lender Jones on the exact same loan, say a basic FHA mortgage.

As interest rates have fallen, REITS have provided a higher dividend yield than stocks (on average), because they have to pay out 90 % of their profits.

Borrowing money at an interest rate below inflation means that you will actually make a profit in real terms, since you will pay back less real value than you borrowed.

I hope you understand that the moves by the banks to increase interest rates is more about an opportunity for them to increase profit they make than about some cosmic reason.

This model of lending provides benefits to all parties involved; lenders often earn higher returns than other investment vehicles, borrowers have access to lower interest rates than banks, and the P2P lending company profits through marginal fees on each match they provide.

Because these institutions operate on a not - for - profit basis, the savings are passed on to the members in the form of low interest rate loans and high - interest rate savings accounts keeping more money in the local community, rather than paying high salaries for bank executives or dividends for shareholders.

You can get better interest rates than you would get at a bank sometimes, and there are supposedly no hidden fees, although you always have to be careful since these companies are run for a profit, after all.

But more than three years after the recession threw car sales into a tailspin, many dealers have started offering loans at interest rates so low they don't make much of a profit — and that's turning conventional car - buying wisdom on its head.

So consider how much banks are truly profiting on your money when a savings account offers you less than 1 % return on your money and the bank creates a loan with a 5 %, 10 % or even 30 % interest rate.

The seller benefits by offering the buyer a loan at a higher interest rate than the existing mortgage, and the lender profits from the difference in interest in the two loans.