With an adjustable rate mortgage (ARM) , the interest rate is lower at the beginning than the fixed-rate alternative, but the customer bears the risk of interest rates going up in the future.
These are designed to be easy to sell, but may not be in the best interest of the borrower. They usually start with a fix-rate initial period, and then set intervals going forward at which the rate can be adjusted up or down depending on market conditions and prevailing interest rates.
The variable interest rate formula allows the lending institution to give itself some insurance against market and interest rate risk. Fixed-rate loans tend to be better in the long-term, just because there’s no question about how much you’ll be paying, and there will be no surprises.
People often refinance to switch from a variable rate to a fixed rate.
There are three major ways to structure a bond portfolio: a ladder strategy, a barbell strategy, and a bullet strategy
Market capitalization is a measure of a company’s size, in terms of the value of its total outstanding shares
The main difference is that the TSP is only for Federal employees. A Thrift Savings Plan is essentially a 401(k)
Capital Loss refers to a loss realized when a security is sold for less than it was purchased for. In stock trading...
A hypothesis is a testable prediction of results that should be observed due to the effects of an independent variable
An earnings call is when a company opens up a teleconference line or webcast that the public can join to hear the...
A home inspection is performed by a certified home inspector to determine the condition of a property and to find out...
Mortgage subsidy bonds are municipal bonds which are used to fund mortgage relief programs (a.k.a. mortgage revenue bond)
The most common way to buy Bitcoin is through online services such as Coinbase, Bitpanda, Bitquick, Localbitcoins, and Spectrocoin
The cryptocurrency community has opened up creative options for making money in the form of lending platforms