The profitability of rental properties in the US are affected by interest rates. Usually when a central bank decides to tighten monetary policy it slows down economic activities because businesses rely credit to grow. But for real estate investors a rising interest rate environment may be an opportunity to buy assets are a cheaper price.One metric to measure the … [Read more...]
interest rates
Adjusting Debt Levels Based on Interest Rates
The United States and much of the world has been in a long period of low interest rates. But the Federal Reserve, the independent body that sets base rate targets for the financial markets, has been slowly raising interest rates since 2015. Over the last 6 months, the interest rate has climbed twice, each time a 0.25% increase.It is expected by most economists that … [Read more...]
How Credit Score Affects Interest Rates on a LendingClub Loan
We all know that your credit score can be like an albatross hanging around your neck, as it can serve as a painful reminder of any financial mistakes you have made in the past. Not only can it limit your options in life, but it can also prevent you from taking out a loan when you need it.If you’re able to take out a loan, your credit score will affect the type of interest … [Read more...]
The Interesting Effects of Higher Interest Rates
The Feds made the fateful decision in December 2015 to hike interest rates for the first time since 2006 from historic lows of 0.25% to 0.5%. Fed Chairwoman Janet Yellen has said that the central bank would gradually raise the rates in coming years. It indicates US economic recovery from global meltdown and full employment that would eventually give rise to excess demand, … [Read more...]
Manipulating Compound Interest Rates
Hey everyone, thanks for joining me for this week's Monday Money! Today, I'm going to go over something that most people have some experience with and know very little about at the same time, compound interest rates.If you have a loan that you were charged interest on, you've had experience with compound interest rates. Also, if you've had a savings account and you've … [Read more...]
