How Rising Interest Rates Can Impact You

Interest rates have slowly started picking up and this will have a huge impact on your personal finances. It will increase the costs of your debt while giving you better returns on your savings.

During the economic recession, the Fed pumped in money into the economy. It kept the banks that were struggling because of high risk mortgage loans afloat by giving huge loans. It also made purchases of mortgage backed securities and kept the money supply in the economy at a high level. The economy seems to be on the road towards recovery and most of the banks were saved. [Read more…]

Understanding Interest Rate Fluctuations

In order to invest your money in the right instruments, it is important to understand what rate your investments will grow at. Financial institutions offer interest rates based on numerous factors. Knowing about how interest rates are fixed can help you in making sound investments and in estimating the returns that you will get by investing in a particular instrument. [Read more…]

Mortgage Market to Remain Stable with New Investors Filling the Fed Void

Investors are wary of the direction that the housing market may take, now that the Fed is no longer supporting it. However, analysts believe that the sector will not be subjected to much turbulence in the form of soaring interest rates because other investors who have been waiting in the wings for sound investment opportunities will fill in the void. [Read more…]

New Bubbles in the Economy Could Be Forming with Cheap Money

With interest rates close to their historical lows, some economists believe that new bubbles might be forming in some areas of the economy. If this is true, the Fed could be solving the current crisis but giving rise to a similar problem in future. [Read more…]

Interest Rates Could Remain Low for a Long Time

All indications are that there would not be any serious interest rate hikes in the near future. The unemployment rate is still quite high and there is no hint of inflation rearing its head. These should be good enough reasons for the Fed to keep interest rates low for a long time, and the view is supported by many monetary policy makers and prominent economists. [Read more…]

Home Loans Interest Rates

When you begin to shop in the market for home loans, you will recognize that the mortgage lenders or creditors vary in several different segments but the most significant factor in their differences is the home loans interest rates. For the most part, the rate of interest is the determining factor if you can or can’t afford the monthly payment schedule that will be granted to you. [Read more…]

Home Loan Interest Rates

Interest rate represents the yearly charge that buyers have to pay, it is an annual percentage that varies dependently on the amount borrowed, the profile of the person and the value of loan. In other words this is represents the amount of money that clients are obligated to pay monthly beside the loan rate. This is how profit lenders make money from lending their clients. It is very important to understand first the concept of loan interest rates before applying for a mortgage. [Read more…]