When you start shopping around for home loans you will notice that they vary slightly in several different areas but where they may vary quite a bit and what you will want to pay attention to is the interest rate of the loan. The interest rate of the loan determines, in large part, how affordable your monthly payment will be. When you are buying a home it is important to consider how affordably the monthly payment truly is because you could (more…)

An adjustable rate mortgage, called an ARM for short, is a mortgage with an interest rate that is linked to an economic index. The interest rate, and your payments, are periodically adjusted up or down as the index changes.

ARM Terminology

Index

An index is a guide that lenders use to measure interest rate changes. Common indexes used by lenders include the activity of one, (more…)

If you’re going to play the market, you’re most likely in it to win. You expect a modest return on your investment, or at least to make your money back. Your choice of investment matters a lot, so it really helps if you can calculate how much money you can expect to make. The most general meaning of yield is the amount of money returned (usually annually) in the form of dividends.

1. Current Yield

If you are looking to estimate (more…)

The Fed announced today that they were reducing the Discount rate another 50 basis points after having just reduced it 75 basis points last week. So, the Fed has dropped rates 1.25% in ten days. So, how did the market react? All three major Indexes were in tge red at th close. Why? Could it be Alan Greenspan?

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A discount offset mortgage is an offset mortgage with a discount on the standard variable rate (SVR) of interest for a set amount of time.

This article will briefly look at a standard offset mortgage, and then look at the difference a discount offset mortgage makes to the borrower.

An Offset Mortgage

An offset mortgage combines your main current account and/or savings account with your mortga (more…)