Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%. However, sellers should realize that waiting to make the move while mortgage rates are increasing […]
What to Ask When Getting a Loan Do you know the right questions to ask a lender or mortgage broker? Before you start looking at homes, it's wise to get your selection of a lender squared away first. Part of being prepared to get a loan is asking your mortgage company the right questions. When you first start looking for a lender to help you buy a home, it is normal to feel like it’s a one-way street—you need the money, so anyone who will offer it to you seems like someone you should do your…
What do we Mean by Nominal Interest Rate? Interest rate is the rate at which a lender charges the interest to a borrower for a particular time period for the sum of money he provides as a loan. Interest is the charge for using the funds of the lender. Nominal interest rate is the simple rate of interest that a lender charges on the loan, without taking into account the effect of inflation, fees and charges, and the
What do we Mean by a Forward Interest Rate? Forward interest rate is the interest rate that an investor can fix at the present day for some future time period. Investors use the process of “bootstrapping” to calculate these interest rates from the spot interest rates. In simple words, a party to a contract agrees to borrow or lend money from another party at the forward interest rate at a specific date in the future.