Sentences with phrase «than the variable rate because»

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.

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.

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.

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

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.

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

It doesn't help that 10 - year bond yields are still lower than the prospective operating earnings yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «get in when stock yields are high and interest rates are falling, and get out when the reverse is true.»

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.

This is in part because there are many other influences on student gains other than individual teachers, and in part because teachers» value - added ratings are affected by differences in the students who are assigned to them, even when statistical models try to control for student demographic variables.

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.

We chose this because we got a low rate (2.6 %) and it was actually cheaper than the variable rate at the time.

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

These rates are usually initially higher than variable interest rates because they do not change over the life of the 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.

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

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.

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.

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.

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

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.

An investment with a variable interest rate is a higher risk than an investment with a fixed rate because you never really know how much you'll earn in the end.

If you have a variable rate credit line, we recommend a 2nd mortgage refinance because the rate is fixed and each payment you make would go towards principal and interest rather than just interest like it is with HELOCs.

In it, she makes the case in the aggregate we are better off taking a series of 1 yr variable mortgages, because the premium we pay to get a fixed rate ends up being more expensive than the risk attached to the cheapest available variable 1 yr.

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

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.

Consideration Your total student loan cost may be higher because the interest rate may be higher than the starting variable interest rate.

Because of recent legislation, all Canadian home buyers must now qualify for a mortgage based on a 25 - year amortization and the posted 5 - year fixed rate — and this applies even if you opt for a longer or shorter amortization, or select a variable rather than fixed mortgage.

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

Because the interest rates do not change, they are seen as more safe and are typically higher than variable rates to start.

LendKey particularly stands because the high - end APR rate for variable - and fixed - rate loans from its lending network are 2 % to 3 % lower than other competitors.

A variable rate loan usually offers a lower initial interest rate than a fixed rate student loan, but because the rate can fluctuate over time, it also presents a greater risk.

Long and Christensen found no statistically significant correlation between readability and outcome in the briefs in their study.129 For federal appellate court briefs and state supreme court briefs, the only variable with a statistically significant correlation to reversal was jurisdiction, which is not surprising because state cases have higher reversal rates than federal cases.

Earning potential is lower than variable universal life because most policies are subject to cap rates

Even with these requirements in mind, it is very difficult to identify average rates or typical costs for ATV insurance because of additional variables other than state and regional differences.

Parker Pope states that, «because so many variables in the marriage - and - divorce equation are changing, a simple calculation comparing marriages and divorces in a given year ends up distorting the result and suggesting that the divorce rate is higher than it really is.»

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.

Mind you, this qualifying rate is nothing new because previously (effective Oct 17, 2016) all mortgage seekers who wanted Variable rate mortgages and any fix rate mortgage with less than 5 years term were being qualified with the standard mortgage rate of 4.64 % with 25 years amortization.