Today's Mortgage Interest Rates

Loan Payment Examples

 

Fannie Mae and Freddie Mac , mortgage giants, have been bailed out by the working class. During the economic turmoil that ensued just several years ago in the U.S., mortgage giants Freddie Mac and Fannie Mae, received a significant amount of bailout fund money. This number exceeds 100 million. A significant portion of these funds were then utilized to pay top executives in the companies. Freddie Mac and Fannie Mae report that these monies were needed to pay top execs because their services are vital in keeping the companies afloat during troubled times

Investment portfolios

The rate debate: fixed vs. variable rate home loans

Home loans generally have either a fixed or variable interest rate, or a split rate - a mixture of both. A fixed rate home loan is taken out for a set period with a set interest rate; when this period ends you can fix the rate again, or switch to a variable interest rate which fluctuates with the market.

 

Whenever you bought your household, you're most likely got a fixed interest rate mortgage having a 15 or 30 year term. These are one of the most well-known mortgages inside the market. Even inside the summer of 2004, when the interest-only or uncomplicated interest mortgage loans became common, the typical American stuck to the fixed rate. You see, the fixed rate delivers security to conservative men and women, along with the typical American household buyer and house owner is actually a really conservative individual.

 

While fixed interest doesn't deliver the highs of shares or property trust investments, it tends not to suffer the lows that these investments can in more volatile times.

Types of fixed interest securities
Fixed interest investments can be issued by the Commonwealth Government, state governments, semi-government authorities, banks and other corporations, both locally and overseas, to raise capital for projects.

Fixed interest investments usually have longer investment terms than cash investments. Australian bond maturities range from one to 10 years while US bonds can extend up to 30 years.

 

One of the major choices to be made when choosing a home loan or a loan on a residential investment property is whether to take a variable interest rate or a fixed interest rate.
A fixed interest rate will not change during the fixed period. During the fixed period the borrower knows their repayments will remain unchanged.

 

Fannie Mae and Freddie Mac , mortgage giants, have been bailed out by the working class. During the economic turmoil that ensued just several years ago in the U.S., mortgage giants Freddie Mac and Fannie Mae, received a significant amount of bailout fund money. This number exceeds 100 million. A significant portion of these funds were then utilized to pay top executives in the companies.

Fixed vs. Variable Interest Rate

One of the major choices to be made when choosing a home loan or a loan on a residential investment property is whether to take a variable interest rate or a fixed interest rate.
A fixed interest rate will not change during the fixed period. During the fixed period the borrower knows their repayments will remain unchanged.


  • Fixed mortgage rate offers uniform payment throughout life of loan (does not apply to taxes, insurance, or other escrowed items).

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