What is the point of interest cuts?

The bank of England are cutting rates again I hear. My mortgage doesn%26#039;t go down though. I am on a standard variable and my lender never pass the advantage on to me. I missed out in December and will again. The Govt need to be more stricter with these mortgage companies. I really could do with the lower payments at the moment. As last May my discount rate ended and my payments went up by 250 pounds in one go!. Then my mortgage lender would not let me take out a new fixed rate deal. These lenders are creeps. As soon as interest rates go up your mortgage does. When interest rates go down the mortgage never does.

What is the point of interest cuts?unsecured loan

When the BOE cuts interest rates, your lender is not mandated to pass on that cut to you. Yes, I know it seems unfair and conversely lenders are all too quick to pass on an increase immediately. Essentially, a cut by the BOE is aimed at business and not the individual . . . it hopes to create a certain amount of cheaper borrowing for companies to invest in capital equipment, job creation and the likes. When the economy slows, as it is doing, the BOE/Government must try to counteract that slowing in order to keep things on an even keel and promote growth. In the short term, you may not benefit but the emphasis is on the bigger picture. I know it can be difficult and we all suffer a little, but interest rates even at what they are today are historically low, so if you find yourself in difficulty in the short term, you have to reconsider your options with either other lenders or even economise for the short term. I hope everything works out for you.

What is the point of interest cuts? loan

Are you on a variable or a fixed rate mortgage?

if you are fixed rate you will never see a difference, whatever the rate may be.

Dont forget also that the bank of englands interest rate is a SET base rate, and mortgage lenders only use that figure as a guideline rather than a fixed amount.|||I think you need to move mortgage lender|||You arent fixed to one lender, you can switch lenders any time, especially as your discount rate has ended. You should really think about shopping around, go speak to an independent mortgage broker who will be able to search a panel of lenders for you to find the best deals (for free).|||The Bank of England doesn%26#039;t have any part to play in mortgage rates. The repo rate it sets is the target rate at which banks lend to each other, and at which it provides short term cover (liquidity) when needed. The repo rate is being lowered to encourage banks to be more relaxed about lending money to each other, because if they don%26#039;t there is a possibility that your lender may not be able to get access to %26quot;cheap%26quot; money to cover the loan it made to you. If they can%26#039;t they will want to pass on the additional cost to you. You may not appreciate that banks lend and borrow off each other every day because they are obliged to balance their books. They don%26#039;t have a choice but to borrow money if they think they might be short. And when other banks are reluctant to lend the price (interest rate) of those funds goes up. Recently banks have sometimes been having to borrow at rates way above the rate you are being charged.

The rate charged by your mortgage lender is influenced by two things: the amount of profit they want to make and the amount of risk they think they are taking by lending you the money in the first place. If they thought that the amount of profit they make from you wasn%26#039;t worth the risk they take in lending it to you, i.e. that they might end up losing money, they wouldn%26#039;t lend to you at all. They won%26#039;t want to let you change to a fixed rate now because they would have to fix you at the sky-high rates that the market is playing with now, and as bad as your situation is, you really don%26#039;t want to be exposed to them. What everyone missed in the Northern Rock fiasco was that the reason they went to the Bank of England in the first place was so that they didn%26#039;t have to pass the real cost of funds onto their mortgage borrowers. They could have done that, and repossessed all the houses of the defaulters that eventuated (that%26#039;s what always used to happen) but they chose instead to suck it up themselves. Their mortgage holders (I am one) are very very lucky.

Unfortunately you have fallen into a common trap. You have been dazzled by the lower %26quot;teazer%26quot; rate that is used to get you tied into the mortgage, but the rate that really matters is the one that applies after the teazer period, and your one isn%26#039;t fixed to anything. Personally I would never go for a mortgage rate that is variable unless it is tied to the repo rate. If I were you I would try and tighten my belt and get through this. The bad times will pass and you%26#039;ll be able to renegotiate a better deal.

Best of luck.|||If your not happy with your mortgage then re-mortgage there are lots of deals around.|||It%26#039;s a fiscal thing. Management of the Economy. It plays havoc though with the returns on my savings.

Girlfriend stuck in bad auto loan. We did the research and they call it a 3rd Party Loan?

Loan prior to us meeting. We went to trade in the car to move up. Found out what kind of mess she had got in years ago. No dealer will take this car as a trade because she is a ghost on the loan. Some guy in some hole in the wall financed this car for her but actually he financed it through his bank. He gets a low rate and charges her a higher rate which I guess is all on the up and up but on the Title it shows the Finance place that she went through and his bank I assume. No dealership will take her car and pay it off as there is no guarentee that he will do so and send them the title. He also somehow wrote this deal up as a Lease. When questioned, he states that the car would be paid off way before the Lease expired??? What recourse does he have if we just turn over the car? This car doesn%26#039;t even exist on her credit. She doesn%26#039;t want to affect the co sighner she had when she got the car 4 years ago. Like I said, she doesn%26#039;t exist to the Bank thats on the Title, just to the middle guy

Girlfriend stuck in bad auto loan. We did the research and they call it a 3rd Party Loan?student loan consolidation

Be carefull, In Illinois there is no such thing but the middle guy can go after your credit after you give the car back because, remember, you have a signed contract, He can sell the contract to a collection agency.

Girlfriend stuck in bad auto loan. We did the research and they call it a 3rd Party Loan? loan

What name is on the title as registered owner? That would be the only person who can do anything with the vehicle, and it%26#039;s unclear from your question who that would be. Who is the legal owner?

If it is written up as a lease, she is renting miles on the car, not buying it.

I would suggest a half hour with an attorney.

What does the deflating American dollar mean to you?

I read an article in the BBC saying their pound is stronger then the American dollar by more then double. So I did some more research and I found out the Canadian Dollar is also increasing while the American Dollar is decreasing, Along with the decreasing American dollar the Swiss banks lowered interest rates due to the poor American dollar! I understand that globally we are all intertwined economically but what is pleaguing my mind is the Question: What does the deflating american dollar mean for Americans? Good, Bad, Indifferent? With all the housing prices dropping that good (for me), but I can also see why it is trouble. I just need a little more indepth as to deflation on the dollar and I would be greatful if someone can explain it properly without a whole bunch of ignorant answers!!!!!! Thanks!

What does the deflating American dollar mean to you?small business loans

Deflation, like any economic event, has several consequences. The most obvious of these, the American dollar is worth less when exchanged for foreign currency. It costs more money for you to travel and more importantly, to purchase imported products / services.

The flip-side of this, is that American products are cheaper; especially for the rest of the world whose currency is suddenly worth more (relatively). Thus the US will export more goods / services.

To you, the average consumer, it means foreign goods are more expensive. But it also means that demand for American goods increase, fueling the economy. Also, those dropping housing prices are due much more to the glut of houses on the market rather than deflation. Hope that helps.

What does the deflating American dollar mean to you?

loan

deflation of the american dollar will make foregin goods more expensive to us, since it cost the company more to purchase the goods in the first place, and since partically all the consumer goods are imported that not good for us. also it will make travel to foregin countries more expensive.|||Deflation of money is ALWAYS bad, people think that the value of money going up is good but it%26#039;s not. Whenever you see deflation, it means that the US gov%26#039;t is in a recession (this means that business is going down and unemployment increases)

However, too much inflation (over 3% inflation) is bad because then it can cause a price wage spiral ( both prices and wages go way out of control). Right now, the deflation is at 3%, the gov%26#039;t will try and stimulate the economy by buying bonds it sold earlier and decrease interest rates so people take out more loans. More loands equals more spending and that allows businesses to thrive and bring the strength of the dollar up.|||I see several people have given some of the effects of the falling dollar, but no one has yet explained the reason for its decreasing value. In essence, the dollar is being devalued around the world because the rest of the world has less and less faith in its value. It%26#039;s as simple as that. The economic policies of US government have driven our economy into such a state of debt, both in terms of annual deficit spending and the total, overall long-term accumulated indebtedness, that other entities worldwide are beginning to doubt our ability to repay those debts. One of the biggest ways we GET into that debt is issuing bonds, which, in reality, are nothing more than IOUs. We%26#039;ve asked the world to lend us money, and when we pay them, and IF we pay them, we pay them in dollars whose value is guaranteed by nothing more than what our combined economy is worth, according to what our government says it is worth.

So yes, the dollar now buys less foreign goods, because they want more of them in order to feel they are getting something of value. And yes, our products sell more cheaply around the world. I note one poster suggests that exports are good for our economy, and there%26#039;s no doubt that is true. But, I am willing to bet that neither he, nor I, have enough information to figure out whether or not the %26quot;value%26quot; of that export market offsets the damage done to the economy as millions of us not benefiting from those export jobs find we have to pay more for everything.

Also, we are not experiencing %26quot;deflation.%26quot; Deflation is the opposite of inflation... Inflation happens when too much money is available to purchase too few goods and services. Prices go up simply because there is too much money around. Deflation is the opposite. There%26#039;s not enough money in the economy to buy the many products that are available. What is going on with the dollar is about devaluation, not deflation. The real truth is, we%26#039;re experiencing devaluation of our currency, coupled with inflation in certain areas of the economy, particularly including the areas of energy and food, because the US is competing with Europe, India, and China to procure an increasing tighter supply of both, and the last two economies I mentioned are becoming stronger and more wealthy by the day, giving them the wealth to out bid us for precious necessities.|||The correct term is Devaluation not Deflation. Deflation does not occur in modern economy. That would mean that the present value of money is worth less than future value. In other words prices drop as time goes by... The devaluation of the dollar means that more dollars will be needed to travel, and the actual %26quot;value%26quot; of a dollar has dropped. The good thing about this is you can actually benefit by purchasing Euro CD%26#039;s or investing in foreign companies due to the fact they will be purchasing infiltrating the American economy by investing in American products,companies or Real Estate Hope this helps.|||We call it USD, or the US Dollar. The USD has been falling since the election turmoil of 2000. The standard all currencies are measured against is Gold. Gold now trades for over $800 per ounce. Effectively, this means the US Dollar of 2000 is only worth 30 cents today.

First question is why the USD is falling against Gold. And the answer is easy. The US is borrowing far more than it%26#039;s bringing in. It%26#039;s as if you made $10,000 a year, but you were spending $15,000. You can%26#039;t do that year after year and be in good financial shape. The US is not in good financial shape. Excuses, no matter if it%26#039;s for war, does not fix the debt issue. I%26#039;m sure your spouse can think of reasons they spent money too.... but, hearing that month after month doesn%26#039;t fix your personal budget either.

The other reason is how currencies are valued. It%26#039;s a pyrmaid scheme on the largest of scales. Until Nixon, it used to be that 1/10th of our currency was backed by Gold. One tenth because some genious back in the 1800%26#039;s discovered that only 10% of the people ever came back for their Gold. When that discovery was made, then the banks decided that they need only hold 1/10 of the Gold necessary for the money they print. It all works great until a scare happens and people demand their money. Now, our currency isn%26#039;t linked to Gold. But, Gold is still the only world standard. That means our USD is free to go up and down against other currencies regardless of the Gold in supply.

The Central Bank from Europe, Australia, Japan, and Germany along with the US Federal Reserve just injected 315 billion dollars into American Banks and Investment firms to save them from going under because of the bad loans they%26#039;ve been making. That equates to 1/3 of the annual income taxes US Taxpayers pay. This is not a loan. This is printing more money. When you just print money without taking other money out of circulation, you devalue the money (e.g. this is the same as if you were a company and released more stock - you%26#039;ve deflated the value for current stock holders).

The problem is that loans need to be made for more money to be created. Eventually, there are not enough people to take out the loans to meet the growing needs of the currency. Then, currency is just printed. Without Gold, even just 1/10 scale, to back it up.... you have a currency that is potentially worthless.

Because the US is such a debtor nation, it%26#039;s critical that the world trade oil in USD. The world does. Iraq tried to change that, knowing the Euro was more stable. That wasn%26#039;t acceptable, so we took their leader out. Iran has raised this desire to trade oil in Euro%26#039;s too, and even opened an exchange to do just that. It resulted in threats of war. They took it off the table for awhlie. Now, it%26#039;s back on the table. Now, it%26#039;s back to threats of war. Why? 80% of the USD is traded for oil, not in American hands. If that 80% isn%26#039;t needed, the USD has no need outside the USA and will fall extremely fast.

What is the best type of construction loan/permanent financing?

My husband and I are 30 and 31 and have 3 kids. We%26#039;ve owned our home for 7 yrs and owe 65K plus a 40K equity line. We have no other debt except our 2 car loans. Our house is now worth at least 130K as is. We are having plans drawn up to add a second floor with our own money but would like to know the best place to get a construction/permanent financing loan for the addition. Our credit scores are 787 and 740 and my husband makes 65K a year and I make about 30K working from home. I%26#039;ve heard some online banks have great rates or would it be better to go with our mortage co. (WAMU) or the credit union we have our 2 car loans and equity line from? **Plus, my husband is a General Contractor and will be doing most of the work himself. Will that affect the payouts? Thanks!

What is the best type of construction loan/permanent financing?bank loan

Most lenders will not like the fact that your husband will be acting as his own general contractor, even if he is very qualified. If he has a friend who could be the contractor (at least on paper) it will save you worlds of trouble...

The equity line of credit you mentioned carries a higher rate of interest than a straight home improvement loan. Consider converting it using the same lender.

Some states will not allow more than one equity loan on a mortgaged home. Check with your banker. If that proves true in your state, there is always the possibility of paying off the equity line and obtaining a completely new secondary loan, which can include the money for the addition. Shopping around this type of loan can be very helpful. It can be very differnet from one type of institution to another. Credit Unions may have lower fees, but usually are not as competetive as banks in terms of interest rates. I would highly recommend talking with a seasoned mortgage broker. Even though they probably won%26#039;t offer this type of financing, they will be helpful in giving you unbiased information as to your lowest cost alternative(s) and help steer you away from trouble by saying the wrong things to potential lenders.

If all else fails, you can completely refinance the house with an FHA 203K interim construction loan, or similar conventional loan. They carry 1.5 to 2% higher rates than regular mortgages, but after 12 on time payments can be %26quot;streamlined%26quot; for a super easy refiinance at normal, current rates of interest. There are no other conditions to be met for these types of refinance. They won%26#039;t even consider credit if the payments are timely. It is automatically approved.

Your FICO scores, income and debt ratios are excellent. This sounds very much like a sensible thing to invest your time, energy and money in. You may have to do some shopping around, but it can be done.

However, I would avoid internet lending. I%26#039;ve of many cases that did not work out for myriad reasons; and only a few that have been satisfactory. This is a loan for a bricks and mortar institution. Good luck.

What is the best type of construction loan/permanent financing?

loan

..........

Investing while in college?

I am not that familiar yet with investing, but I am reading along when I have time. What I want to know Is:

Is it required to have an income to buy shares?

And is there a minimum amount of cash I would need to even start investing? I had %26lt;$2000 to spend and my friend told me to put it to good use and buy shares but I%26#039;ve read around that there is a minimum of $10,000 to start. He said that if I start early there is a low risk because I am still young(19) since I won%26#039;t lose alot as opposed to other adults with assets.

Another option I%26#039;ve been looking at are CD%26#039;s, can anyone recommend any good banks with good rates? (I am in So Cal)

I will be doing my own research to expand my knowledge on investing, but would like some input on how, if possible, I can put this money to good use.

Investing while in college?loan officer

it is good that u can start with cash that you can afford to lose. so, here is my tips to get you started in stock investing.

fundamentally, you can use various key financial ratios to start screening which stock worth your hard earned money. from there, you can go to the next level by further study how they perform qualitatively. Look here for more info:

How to Pick A Good Stock

http://www.stock-investment-made-easy.co...

Guide in Analyzing Stock

http://www.stock-investment-made-easy.co...

then, you must study how much the stock worth. to do this stock valuation, you have to calculate intrinsic value. once you got it, buy the stock when it is at its margin of safety, either it was discounted than its intrinsic value, or discounted from the past historical prices. Look here for details:

How to Calculate Intrinsic Value

http://www.stock-investment-made-easy.co...

How to Determine Margin of Safety

http://www.stock-investment-made-easy.co...

now the last point but the most important things, how you can make money from it? look, good company will grow over time. if you invest for your retirement, you can sell the stock after 20 years with as much as 30% return per year! doesn%26#039;t it sounds good? and besides, you%26#039;ll be earning dividends year after year, which will also grow annually!

Penny Stocks, Short Cut to Wealth

http://www.stock-investment-made-easy.co...

Investing while in college?

loan

You%26#039;re not really going to be able to invest while in college. That is, unless you go part-time and work full-time.

Your friend is wrong. There is always risk. Think about it. You have less than $2000 and you could lose it all. I would consider that a risk, wouldn%26#039;t you? Sure, you don%26#039;t have a mortgage or two car payments. But you can still always be more broke!

The stock market is a sticky thing. You can certainly invest just about any amount through an online broker but, for example, if Google shares are $700 each and you have less than $2000 and most brokers charge a fee... it%26#039;s going to be a slow start.

I would recommend ING Direct for CD%26#039;s.|||forget cds they suck, go here for a 4.5% savings account.

http://www.hsbcdirect.com/1/2/1/offer?co...

buying stocks is also good, just pick one good stock and buy as much as you can. and sit on it. it should earn you on average 10% a year. do not diversify thats what people who like to stay poor do. the rich can diversify because they have a lot of money. put all your money in where you get the highest return on your investment.

fear is an investors worst enemy, do not move you money around to much let it sit in one place and make you money.|||I have been investing for 44 years and can tell you from experience that the direction you are going is one way to get wealthy. You do not need any one set amount of cash. Find an on-line broker and get started.

I had a good job, before retiring, and made five times more money in the market than all of my 32 years of pay checks. My first buy was for $400. Don%26#039;t waste your time on CD,s.|||No you do not have to have an income to start investing in your future. I would like to commend you for being a 19 yr. old who is even thinking about his future. Even though you have no income you have a lump sum amount that you can invest. You have to continue to do your research and see what route works better for the goal you want to achieve. I would say a Mutual Fund is a good option. You could purchase a mutual fund that will invest in several stocks for you. At least your $2000 will be gaining interest. Then when you do get a job just keep adding to it or purchase more.|||1. An income is not required to buy shares in a taxable account. However, once you do so, you may have a slight income (the dividends that you receive from the shares), on which you may owe income tax. An income is required to buy shares in certain types of accounts designed for retirement savings, such as IRAs.

2. There is not a minimum of $10,000 to buy shares, except in a few companies. You can usually get started with less.

3. Investing while in college without an income usually does not work, because college students without an income usually need all their money for other purposes (tuition, pizza, etc.).

4. There is a risk and you may lose money. Do not invest the money that you will need while a student. However, you may invest money that you will not need until you are old (retired or over 60), because even if you lose money some years, you will probably make it back in other years.|||Well, I just put my money in a CD and I got 4.98% for 4 months....If you compound it for a whole year...It would come out to 15.3%...which is astronomical....CDs go up and down depending on what the Feds do to interest rates....I was lucky I locked in...Just go into any bank and take a look at their sign...See what they are paying for CDs...Remember to take note how many months the CD is...This can make the difference of making 10% a year, or 15% a year...|||For the last 4 months the FXCM sentiment aggressive fund has 52% return. (www.fxcm.com). If you open an account through a broker (such as Self-Actualizer Financial Solutions), you can get a big discount on the performance fees--see www.self-actualizer-fs.com

You can open an account with as little as $1,000 until Nov 30; that minimum will increase to $5,000 on Dec 1, as per FXCM.

Statistic hw?

1. Top 15% of student get A.Sample 4 from 200 to complete problem. That 2 of 4 got A%26#039;s use:

A. Binomial distribution

B.normal distribution

C.T dis 3 degree of freedom

d. T distribution with 199 deg.

E. None

2. Summary measure computed from population is a ?

A.Parameter

b.Stats

c. population

d.Sample

e. None

3. Sampled 20 banks and recorded rates for 30 years.Data is

A.discrete

B.continuous

c. binomial

d. none

Statistic hw?quick loan

1) the answer is A, binomial. It can%26#039;t be any of the others, the normal and the student t are both continuous distribution, but the question asked deals with discrete probabilities. So that means only A could be correct. Why is this binomial? The binomial is the sum of n independent and identically distributed Bernoulli trials. In this case each Bernoulli trial is one of the four students sampled. Each as a 15% probability of having an A.

Let X be the number of students sampled who have an A. X has the binomial distribution with n = 4 trials and success probability p = 0.15

In general, if X has the binomial distribution with n trials and a success probability of p then

P[X = x] = n!/(x!(n-x)!) * p^x * (1-p)^(n-x)

for values of x = 0, 1, 2, ..., n

P[X = x] = 0 for any other value of x.

The probability mass function is derived by looking at the number of combination of x objects chosen from n objects and then a total of x success and n - x failures.

Or, in other words, the binomial is the sum of n independent and identically distributed Bernoulli trials.

X ~ Binomial( n , p )

the mean of the binomial distribution is n * p = 0.6

the variance of the binomial distribution is n * p * (1 - p) = 0.51

the standard deviation is the square root of the variance = 鈭?( n * p * (1 - p)) = 0.7141428

The Probability Mass Function, PMF,

f(X) = P(X = x) is:

P( X = 0 ) = 0.5220062

P( X = 1 ) = 0.368475

P( X = 2 ) = 0.0975375

P( X = 3 ) = 0.011475

P( X = 4 ) = 0.00050625

2) parameter.

parameters define populaitons, statistics are from samples.

3) the data is continuous because the rates could be any value between 0 and 100%.

Are on line investment banks for real?

I want to save money but i am on a goverment dissability and only aloud to have 5000.00 in a savings acount at all times if i have more i will lose my dissability untill all funds are gone. So i am looking into online investing with so call banks that offer high intrest rate, daily rates, on your balance. Are these so called banks for real or scams. If they are real witch one should i pick?

Are on line investment banks for real?fast loan

Check out: hsbc.com or maybe Ingdirect.com

Yes, internet banks are for real. Their rates are comparable to that of current short term cd%26#039;s, but there is usually no minimum balance or restriction on withdrawls.

You can transfer the money from the online account to your local bank account in (approximately) 3 days time. I don%26#039;t have the exact figure, but thats ballpark...

Everyone with a checking account should have an internet bank account. Period.

Are on line investment banks for real?

loan

A better option would be to buy CD%26#039;s(certificate of deposit).

and they pay as good as an interest as online banks if not better.

The problem with online banking is -

depositing....if you wire transfer they charge you

withdrawl...most of them do not have atm, and the ones that do have very few

Credit card APR rates?

This is kind of a two part question:I have recently refinanced my mortgage to pay off huge credit card debt, and unfortunately the pay off was off by 4,000. I was hoping to pay off the card completely, and now still owe 4,000. I canceled my card. Does anyone know if I should re-open it to try to negiotate the APR to a lower rate? I was told because I closed it I can%26#039;t negioate the APR. I hate to re-open it, and then be told they will not lower the rate. How does this effect my credit rating? Also if anyone has any advice on working with a credit card company on lowering my rates that would be helpful. The bank is Chase (don%26#039;t know if that makes a difference)

Credit card APR rates?va loan

You can work with any credit card company on the rates, but it depends how your payment history is or was with the company. You have nothing to lose about asking to reopen your account, but with the condition that they will offer you a lower interest rate. The credit card companies don%26#039;t want to lose good customers, so if your account was in good standing then I don%26#039;t see why they wouldn%26#039;t work something out with you.

I%26#039;ve have requested several times, various credit companies to lower my rate. It has usually only taken a few minutes for the rep on the phone to offer the better rate.

If all else fails, leave your account closed and look for a new credit card company that offers 0% for transferred balances. (This is usually offered on new accounts only)

BTW, having closed accounts on your credit vs. open accounts actually helps your credit score. Creditors don%26#039;t like to see too many open revolving accounts on a person%26#039;s credit because it%26#039;s a risk that the consumer can overextend themselves in debt.

Good luck!

Credit card APR rates?

loanYou can visit http://www.debteraserzone.com and find very useful tips and several articles on credit card related matters. Report It

The FED bought What ??

The Fed Bought What?

By John Paul Koning

Posted on 8/13/2007

| Subscribe or Tell Others |

The US Federal Reserve injected $38 billion dollars into the economy via temporary open market operations this Friday. This is the largest number of temporary repurchase agreements (specifically, one business day repos) entered into by the Fed since September 11, 2001. Back in 2001, Fed purchases of treasuries exceeded $30 billion for the four consecutive days after the collapse of the World Trade Towers, total temporary injections into the banking system amounting to a whopping $295 billion.

What is significant about Friday%26#039;s repurchase agreements is not so much their size, but the securities that the Fed exchanged for money: mortgage-backed securities (MBS). Indeed, the entire $38 billion dollar injection went to MBS purchases, the largest open market purchase of this asset type ever conducted by the Fed, smashing the previous record of $8.6 billion set back in September of 2005. See chart, above.[1]

The type of mortgage-backed securities the Fed bought are created when bundles of individual mortgages originated by commercial banks are guaranteed by quasi-governmental agencies such as the Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae), then split apart and sold to investors. Homeowners pay interest on these mortgages, interest payments flowing through to the final holders of MBS.

For those who have gone through the Economics 101 treatment of the Fed, the sudden appearance of MBS in Fed open market operations might seem odd. Professors have always taught that when the Fed expanded the money supply it did so by buying government bonds and bills. Indeed back in September 2001, the Fed provided liquidity by buying what it has always traditionally bought; treasury securities. So why is the Fed buying MBS now, and when did it acquire the authority to do so?

First a note on how open market purchases work. The Fed uses what are called open market operations to control the Federal Funds rate, the rate at which large commercial banks lend cash to each other overnight to fulfill their reserve requirements to the Fed. The Fed sets a target for the federal funds rate and defends it by either withdrawing or injecting money according to the requirements of commercial banks. It injects by buying securities from the banks with freshly created checking deposits, or money. This injection increases the reserves commercial banks hold, allowing these banks to expand credit to businesses and consumers. The Fed withdraws money by selling securities to commercial banks and receiving money as payment, thereby reducing reserves and removing credit from the system.

The Fed conducts both temporary open market operations and permanent ones. Permanent, or outright operations, inject cash and remove securities from the banking system forever. The Fed keeps the securities it has acquired outright in the System Open Market Account, aptly initialed SOMA (in Aldous Huxley%26#039;s Brave New World, the drug soma is produced to keep citizens in a steady state of happiness, much like the Fed%26#039;s SOMA). Temporary operations, the ones entered into this Friday, involve 1鈥?4 day repurchase or reverse repurchase agreements whereby the Fed purchases (or sells) securities in return for cash with an agreement that the commercial bank on the other side of the deal will buy back (or sell back) the securities after a period of days.

Temporary reverse repurchase operations, the short-term withdrawal of money from the banking system, are rare. The Fed has only engaged in 16 reverse repos since late 2000, versus 1247 repurchases. This imbalance means that the Fed is almost always augmenting commercial bank reserves by buying securities, allowing the banks to use their larger reserves to expand credit and borrowing. Thus the rate defended by the Fed is lower than the rate at which the commercial banks would be willing to lend each other if the Fed did not exist.

Back to Friday%26#039;s MBS purchases. Historically, the Fed%26#039;s open market operations have been confined to US Treasuries. Clauses 3 to 6 of the Guidelines for the Conduct of System Operations in Federal Agency Issues ensured that Federal Reserve operations could not engage in temporary purchases of securities issued by federal agencies like Freddie Mac and Fannie Mae.[2]

In an August 1999 Fed meeting officials temporarily suspended clauses 3 to 6, giving themselves the authority to freely purchase Ginnie Mae鈥? Freddie Mac鈥? and Fannie Mae鈥搃ssued MBS on a provisional basis without hindrance on size and timing. The reason given: it needed full reign to inject money into the banking system in preparation for the year 2000 crisis.[3] The period for which the temporary suspension was to extend was from October 1, 1999 through April 7, 2000.

The year 2000 crisis proved a dud. But rather than removing the temporary suspension on buying MBS, the Fed renewed the suspension in 2000 and 2001 before permanently striking off clauses 3 to 6 in 2002. In recent Fed documents, only clauses 1 and 2 are listed. This storyline may sound familiar to Fed watchers. The Fed was founded in response to the crisis of 1907, and had its ability to increase the money supply dramatically increased during another crisis, the Great Depression, where gold convertibility was suspended.

$26

Since the Orwellian rewriting of the Guidelines the Fed has been gradually expanding its MBS purchases, which reached a crescendo this Friday. This (relatively) new power of the Fed is startling given the current liquidity crisis prevailing in the mortgage markets of late. By openly stating its willingness to buy thousands of mortgages and temporarily to expose itself to the financial health (or lack thereof) of the homeowning public, and doing so when the rest of the world is shunning them, the Fed is propping up mortgage markets, and thereby the housing market. This despite the fact that open market operations are not supposed to support individual sectors of the market or channel funds into issues of particular agencies[4]

While the purchases are only temporary 鈥?the cash must be returned by Monday 鈥?one wonders how long before the Fed grants itself the power to buy MBS permanently. Either way, the Fed%26#039;s response shows that it is worried about the growing mortgage crises and willing to do anything to buy its way out of it. Unfortunately, by buying up MBS and propping up the market the Fed will only cause more harm than it already has.

--------------------------------------...

John Paul Koning writes for Pollitt %26amp; Co, a brokerage based in Toronto, Canada.

The FED bought What ??fha loan

The Fed has bought a lot of sub-prime mortgages? Doesn%26#039;t this double the loss if the mortgages default?

Maybe the Fed has finally bought a one way ticket to the %26#039;attention of the public%26#039; and will get some bad publicity for a change... Maybe the media will have to cover it when these mortgages go %26#039;bad%26#039; and the Fed tries to issue more securities to cover the debt it has to the banks that it is trying to support.

The FED bought What ??

loan

Wow.

Cheapest Personal Loan in new delhi?

I am looking for a personal loan. Please suggest a bank which is the best in the market and offers minmum rate of interest?

Also state whether bank provide loan on fixed rate or floating and which one is better.

Also, guide as to which are the things that I should keep in mind while taking the loan.

Please asap, its urgent.

Cheapest Personal Loan in new delhi?secured loan

Check out State Bank of India, they offer the cheapest rate that too on reducing balance and yes they charge at a floating rate rather than a fixed rate this is the practise everywhere.

Cheapest Personal Loan in new delhi? loanAlternatively you can use services of PowerMyLoan.com for free. You just fill in your requirements and all the major banks in your city will compete with each other to give you a loan. Guess what, you have just landed with the best choice possible in the market. www.PowerMyLoan.com Report It

Calculus help please!!!! Compound Interest?

4000 dollars is invested in a bank account at an interest rate of 8 per cent per year, compounded continuously. Meanwhile, 15000 dollars is invested in a bank account at an interest rate of 2 percent compounded annually.

To the nearest year, When will the two accounts have the same balance?

The two accounts will have the same balance after ____ years.

Calculus help please!!!! Compound Interest?cheap loans

Let t be the number of years.

Equal the balance after t years,

4000e^.08t = 15000(1.02)^t, where the LHS is the one compounded continuously, while the RHS is the one compounded annually.

Collect variables in one side,

(e^.08/1.02)^t = 15/4

Take ln, and solve for t,

t = ln(15/4)/ln(e^.08/1.02) = 21.96 ~ 22 years

So, the two accounts will have the same balance after 22 years.

Calculus help please!!!! Compound Interest?

loan

17 years|||I don%26#039;t know what continuously means... but the formula is:

E=S*P^t/c

E= End amount

S= Start amount

P= Percent %26lt;or%26gt; Interest Rate

t = total time

c = time for one cycle (ex. compounded monthy would be 1/12)

^= To the power of

*= multiplied by

/= divided by

Hope this helps|||Compounded contiuously means that you have to use the equation A = Pe^rt. You will substitute P as the dollars invest, r as the percent interest, and t is what you are trying to find. Set the two equations equal to each other, which means:

4000e^(.08t) = 15000e^(.02t) and you can figure this out by taking the natural log on both sides. The nearest year for this would be 22 years. You can substitute in 22 for t in both different equations and the amounts will be very close (this is because it is asking for the nearest year so 22 is a rounded number)

Continuous and compounded interest?

I would appreciate any help with this problem.

3000 dollars is invested in a bank account at an interest rate of 6 per cent per year, compounded continuously. Meanwhile, 28000 dollars is invested in a bank account at an interest rate of 5 percent compounded annually.

To the nearest year, When will the two accounts have the same balance?

Thanks

Continuous and compounded interest?consolidation loans

For continuous interest remember: s=pe^(rt) where p is the intial amount, r is the rate, and t is time

For compound interest remember: s=p(1+i)^t where p is the initial amount, i is the interest rate, and t is time.

You have to set the s%26#039;s equal to each other and solve for the time.

pe^(rt)=p(1+i)^t

Put in your values:

3000e^(.06t)=28000(1.05)^t

Put like terms together:

[e^(.06t)]/[1.05^t]=28/3

Simplify:

[e^.06/1.05]^t=28/3

Take the ln of both sides:

t(ln(e^.06/1.05))=ln(28/3)

Solve for t:

t=ln(28/3)/(ln(e^.06/1.05))

Do you have a less likely chance of concieving by artificial insemination than you do by just having

What is the success rate of getting pregnant by artificial insemination (buying from a sperm bank)? Are you less likely to achieve pregnancy this way compared to just having unprotected sex with a partner? Do sperm banks have very high success rates or not?

Do you have a less likely chance of concieving by artificial insemination than you do by just having sex?student loans company

i had invitro. my hubby just left a sample %26amp; they put his swimmers directly into my eggs, and VIOLA! got pregnant on our second round of IVF.

just having sex is more of a crapshoot, IMO.

Do you have a less likely chance of concieving by artificial insemination than you do by just having sex?

loan

I believe A.I. has a higher pregnancy rate because they place the sperm directly in the cervix.

Auto loan with 8% interest?

My Navy Federal Credit Union bank offers auto loan with 4.50% interest rate for excellent credit or so borrowers and for me as a so and so credit (I have been using my first credit card for 9 months) it will be with 8.00% interest. Is that a fair deal or bad for me? I know that our economy is in a down time with banks starting to lower interest rate and such...

Auto loan with 8% interest?school loans

without a significant repayment history, you%26#039;re probably getting a pretty good deal.

i hope you%26#039;re planning to buy used, not new. A four year old used car saves its owner about $2,000 a year over the same model new car. Insurance is a big part of that [esp. for a single guy.]

Auto loan with 8% interest?

loan

8% for someone with %26quot;so so %26quot; credit and no previous loans, is not too bad. You haven%26#039;t mentioned a key point: for how many months? If it%26#039;s 60 months, then it%26#039;s a good deal.|||The finance charges on a $20000 car loan for 5 years would be about 1/4th of the value of the car. Do you want to pay an extra 23% for the car? (20000 average car loan @ 8% interest gives payments of about 410 per month. When you add it up, you%26#039;re paying $24600 for the car, or an extra 23%)

Why not just pay cash for the car?

Will banks finance as-is properties?

I%26#039;m thinking about selling my house as-is. If someone wants to buy my house, will their bank finance it at the regular interest rate?

I want to sell the house quickly. I don%26#039;t want to spend a lot of time and money fixing it up. I still plan to paint it and put in new carpet for show appeal. I was just wondering if I%26#039;m limiting the number of people who could purchase my home if it is listed as-is.

I understand most folks are still going to get an inspection done. And I understand that if something major comes out in the inspection, the bank won%26#039;t finance. But if nothing big comes out in the inspection will the bank finance it as-is? Or will a bank finance if there is no inpsection.

What type of things would a bank not finance? I%26#039;m in San Antonio, TX.

Oh yeah, one other question.. is it crazy to have an open house on an as-is property?

Thanks

Will banks finance as-is properties?debt consolidation loan

all you are going to attract is low lifes and want to be house flippers looking for no money down owner financing.

If the property is in need of serious repairs and has code violations the chances of finding an off the street buyer is going to be small.

If its carpets and painting then you should not sweat it

Will banks finance as-is properties?

loan

charge ahead ... small imperfections won%26#039;t bother the bank as long as the appraisal is high enough

and go with the open house ... you need all the marketing help you can get

I'd like someone with viable business knowledge and experience to answer this question please?

Im 17 and I wish to take out a loan from a bank at the lowest interest rate I can get, and then invest this money and in a low to medium risk company with a higher rate of return than the bank loan in order to shrink the size my student will become over the next few years as I am about to start my university studies. Although I am aware of the risks, I am still unsure: is this a reasonable idea? At my age am i playing with fire?

I%26#039;d like someone with viable business knowledge and experience to answer this question please?title loans

The majority of posters are correct. I wouldn%26#039;t do it. First, you%26#039;re 17 years old, no bank is going to make a loan to a minor. If a minor did sign a contract, it%26#039;s a voidable contract at the discrepency of the minor. Not good business.

Second, you should never investment money you can not afford to lose. It should never be borrowed money. If you lose it, you are now in debt and must pay it back. If it%26#039;s money that if lost would hurt you financially, then don%26#039;t do it. It should only be money that if you lost it, it wouldn%26#039;t affect your financial standing.

The poster that said invest in the stock market is telling you to play with fire. First, how much do you know about stock investing? The Harvard School of Business released the data on a study of how many people lose money in the stock market. Know what the percentage is? 90%. That is 9 out of 10 people lose money equities. Not because they%26#039;re bad, but because they don%26#039;t know how to trade. There is a learning curve in trading that can take several years to perfect. Also, the closed end fund that invests in mortgages, before you go and do that, pay attention to what%26#039;s happening in the housing markets. I don%26#039;t think investing in mortgages or mortgage-backed securities is the wisest thing right now. Don%26#039;t take my word for it, just look at what%26#039;s happening to the R.E. market. It%26#039;s not good.

It is indeed possible, that%26#039;s what the carry trade is all about. Up until a short time ago, the interest rates in Japan was 0%. This caused the Yen carry trade to flourish. People would borrow Yen at 0% interest and then invest the money in bonds in a country with a higher rate of return, like in the U.S. were rates were 4% and higher. The problem now is that the BOJ has begun raising their rates. This should impact the carry trade as 1) the closing of the rate gap and 2) the strengthening of exchange rate of the JPY relative to the USD would cause investors in the carry trade to lose money.

Anyway, what you%26#039;re prosposing is very risky. You are borrowing money at a fixed, definite rate and invest it in a product that may or may not give you the kind of returns to service the debt leaving you with a net positive return. See the inherent danger?

I personally think you are playing with fire. Any negative move in your investment vehicle, relative to your loan could be catastrophic.

I%26#039;d like someone with viable business knowledge and experience to answer this question please?

loan

I%26#039;m assuming you are talking about a corporate bond b/c you seem to know the rate of return. If I were making the decision it would depend on the size of the loan and the length of the bond. I wouldn%26#039;t do it. but its up to you. Of course any company can fall from grace rather quickly ( Enron, Delta). So be careful and be aware that if they default on the bond then you owe the entire loan amount plus interests.|||Unfortunately it does not work like this or else everyone including the bank would have done the same. There is a element of risk in every investment and no returns are guaranteed but your bank repayments and interest are to be paid for sure. So if any one is giving you ideas, stay away from it.|||You can borrow money from the bank and make money in the stock market at a higher rate than the cost of the loan(s). There is no argument against it. (That the banks don%26#039;t do it doesn%26#039;t mean it cannot be done. Banks have strict regulations. Period.) The loan rate must be below 10%.

The trick is to get a reasonable spread between the rate on your loans and the return that you can expect from your investment. You must accept medium risk, at the very least. Meanwhile, you can manage that risk with the help of an advisor. Why? Depending on the size or your invesment you can manage your investment and receive an average annual return of 14% or better year after year, paying roughly 1.5% to an advisor.

I will give you a hint for free. There is an investment that is seldom advertised or promoted. It%26#039;s call %26quot;closed-end fund%26quot;. Right now, I have several clients who are either paying off loans or anticipating a loan, and they are getting 12-16% on their investments. One such fund, listed on the NYSE, is called the American Strategic Portfolio. It invests in mortgages. The fund is expected average 15% per year for the next twelve months. We will make adjustments and changes when the performance starts to go down.

You cannot proceed with this strategy with your eyes closed. Yes, it definitely can be done.

Hawk|||If you invest in a low to medium risk company you will get low to medium rate of return and you will lose money.

On the other hand, if you invest in a high risk company you will get a high interest rate of return and you will become a millionaire eventually.

If you bet the wrong way then you will die broke.

Donald Trump does exactly what you are trying to do.

NOTE: He is broke.

I suggest you to finish college and then get an MBA and then you will make at least $100,000.00 USD per year and you will be a millionaire in less than a decade.

You are supposed to invest your own money.|||Your plan won%26#039;t work, since Banks are smarter to not to offer loans at lesser rates than what you will gain from stock market or bond market. The few types of loans are term loans, compensating balance loans etc; which are given to businesses at higher interest rates. Personal loans are given only to professionals with established credit history and there is limit to this depending on your ability to pay back. You don%26#039;t even have a drivers licence or a ss card to prove your identity. Then how can you open an account in the first place. So forget it, if it was so easy then many would have followed your path much earlier.

What you are trying to play is what high ended Finance Professionals do in other markets, playing on the spread differentials. When you go to University and learn if you happen to take some business level courses in Finance you can get a feel for it. For the time being forget it.

Please help with this calc question?

4000 dollars is invested in a bank account at an interest rate of 8% per year, compounded continuously. Meanwhile, 11000 dollars is invested in a bank account at an interest rate of 5% compounded annually.

To the nearest year, when will the two accounts have the same balance?

Please help with this calc question?loan company

this is the equation for a continuously compounded investment:

A = Pe^(rt)

where

A = total amount (current worth)

P = initial deposit (or principal)

r = annual interest rate (expressed as a fraction)

t = number of years invested

so, using that equation and plugging in the numbers:

A = 4000 e^(0.08t)

this is the equation for an annually compounded investment:

A = P (1 + r)^t

so, using that equation and plugging in the numbers:

A = 11000 (1 + 0.05)^t

now, we set those two equations equal to each other:

4000e^(0.08t) = 11000(1.05)^t

divide both sides by 4000:

e^0.08t = 2.75 (1.05)^t

take the natural log of both sides:

ln (e^0.08t) = ln (2.75 (1.05)^t)

thus:

0.08t = ln (2.75 (1.05)^t)

0.08t = ln (2.75) + ln (1.05^t)

0.08t = ln (2.75) + t (ln (1.05))

collect the terms with t to one side:

0.08t - t (ln (1.05)) = ln (2.75)

t (0.08 - ln (1.05)) = ln (2.75)

divide both sides by (0.08 - ln (1.05)) to solve for t:

t = (ln (2.75)) / (0.08 - ln (1.05))

plug that into your calculator to get an actual number:

t = 32.413 years

i hope that helped!

When is good time for money transfer?

hi

I have some savings in French bank and want to transfer it to UK bank but for each 100 euro I am getting only 67.40锟?whereas in July I got almost 68.7锟?for each 100 euros. I am afraid in November if the Bank of England increased interest rate the 锟?will be strenghthened and I will lose much money on transer. When do you think is good time to change the currency before the end of this year? YOur help is very much appreciated.

When is good time for money transfer?commericial loan

The good time is when you need to transfer and when the exchange rate is favourable!

When is good time for money transfer? loan

Too complicated for me !! sorii, when the exchange rate is the best maybe, check them regular xx|||If you need the money, do it now. Go with what you know, and don%26#039;t look back.|||sooner the better|||watch the markets|||the Base rate recently increased in France, July I think.

Depending on how much you want to transfer and what it costs you to do it, you might average out the exchange rate by doing it in three amounts, one now, one in November, the last in December. You should get 68p per euro, I reckon.

If you put your savings in the UK into an ISA you should get 5% interest, there is no tax due on this.|||as soon as possible because world markets are increasing interest rates .and in that case you might lose.|||Do it now...

And then put the money in a profitable account (like an ISA)...

You will soon gain back all the money you lose from the exchange!|||Let%26#039;s get down to basics. Work out how much you would %26quot;lose%26quot; in the event of exchange rate movement. If that will keep you awake at night then arguably you should send the money now - at least you know what you have got for your Euros. You will need to be philosophiocal about things if the Euro strengthens later.

Remember, there are people out there who make a living at this sort of thing and even they get it wrong sometimes. The difference is that this is your own money not someone elses so losses can hurt.

If the amount that you would %26quot;lose%26quot; is small then you may wish to ride the rate and see what happens but you should fix in your mind the worst rate that you are prepared to accept and act if the Euro falls that low - a %26quot;stop/loss%26quot; position, if you like.

Another alternative is to move some money now and some later. Work on the averages. You may not be the biggest winner but you may not be the biggest loser either.

Hope this helps.

Certificate of Deposit (CD) Rates?

I was just looking on yahoo for CD rates...and it looked like the 3 and 5 year rates werent even as good as a 1 year rate? why would this be? wouldnt the bank rather you have a longer investment with their bank? Seems to me the 5 year rate should be MUCH better than the 1 year rate. Anybody know why?

Certificate of Deposit (CD) Rates?emergency loan

Don%26#039;t get a long-term CD. The reason why is because rates always change, majority of the time it goes up. So just pretend you put in $5,000 for 3 years at a 4.5% APY, while on the other hand you also put in $5,000 for 1 year at the same rate of 4.5%. At the end of of 1 year, the rates goes up to 5%. You can renew the 1 year CD, but you can%26#039;t for the 3 year one. Your money is tied up if you open up a CD since its very time-based and has penalty fees for withdrawing money earlier then maturity date. Go for 4 or 6-month CDs, and 1-year max.

What does a C plus rating mean in personal banking terms?

What does this mean in terms of services I can get now and when would I reach an %26#039;A%26#039; rating?

What does a C plus rating mean in personal banking terms?tax credit

It probably indicates a fair rating on your FICO score. You can get more specific advice about what it means.

HELP?! plz answer?

this is a question..

the dealer offers an annual interest rate of 9.9%. The bank offers an annual interst rate of

9 3/4 % .which is lower interest rate?

i thnk its 9 3/4 % but im no tsure

HELP?! plz answer?credot siosse

9 3/4

(The correct answer is 9 3/4% which is the same as 9.75%. It may be easier for you to see that 9.75% is less than 9.9%. Or 3/4 is less than 9/10)

HELP?! plz answer?

loan

9 3/4|||Think of 3/4 as 3 quarters, a quarter is 25 cents right, so that would be 75 (cents) like 9.75|||9 and 3/4 is equal to 9.75%. Which is lower than 9.9%, so you are right.|||9-3/4 is the lower interest rate. Put 3/4 into decimal form - it is .75. So you see that the comparison is between 9.99 and 9.75.|||9 3/4% is the lowest interest rate.|||9 3/4 = 9.75.

9.75 is lower than 9.9|||lowest is 9.3/4%.but safe investment is always with bank not with dealers.think twice before you save.because money are always hard earned.so please go for safety of money.

How & when did the Feds. lower the rates by 3/4 pts (think about it)??

The markets, banks and ALL federal offices were CLOSED yesterday for the Martin Luther Kin holiday, right?... so... with one week ahead of the Fed. Banking meetings... HOW WAS THE RATE CHOPPED BEFORE THE OPEN OF TUES. BUSINESS? How is that possible? and I%26#039;m ONLY asking, because the %26quot;world markets%26quot; yesterday were off as much as 4% and this move seemed a DIRECT strategy to ease the USA markets in reaction (it%26#039;s still down 1%+, but imagine if there was NO rate cut!!!)... So, WHO ARE THE 2-3 GUYS that phoned %26amp; made/influenced the DECISION to so this, and get it done so early -- as we KNOW that the Gov%26#039;t doesn%26#039;t WORK this fast... in fact, right? Is there a STORY HERE!!!???

P.S. -- When did the USA lose its media %26amp; reporting?

How %26amp; when did the Feds. lower the rates by 3/4 pts (think about it)??interest rate

Ben Bernanke (chairman of the Federal Reserve) and his colleagues, presumably the Fed board of governors and possibly district officials, met last night (Monday) via an emergency video conference in response to the shock on international exchanges. It was done, as you say, strategically to ease the market open after a very rough off-day. Interest rate cuts and increases are never announced or leaked in advance as this could create the potential for insider trading. Generally, rate cuts are expected and priced into the market; however, this was an emergency decision and therefore had a significant, immediate impact on the market. As you know, the Dow opened almost 450 points below its Friday close. This rate cut helped the market pare most of its opening losses.

As for the rest of your question, you seem pretty cynical vis a vis the government. Ben Bernanke is leading the Fed and it is his responsibility to handle emergencies like this. There are some extremely intelligent and prudent economists on the board of governors and they are allowed to take action without a lot a bureaucratic red tape. Also, the media is here, there and everywhere - they are simply never made aware of rate cuts before they are announced to the market by the Fed. I believe the media is beating the recession drum a little too loudly and is actually driving some of the public hysteria.

Best way to get loan? Financing for older vehicles?

I%26#039;m looking to buy a vehicle in the coming months. I really want a diesel truck, but the only models of them that I can really afford at the moment are ones that are a few years old (for example, around %26#039;97-99 or so). How can I get financing for a vehicle that old and not get totally killed on the interest rates? Plus I%26#039;ve seen a lot of places that say they won%26#039;t finance anything older than 2000.

Also, what%26#039;s the best place to get financing through? My bank has crappy interest rates for the most part, and Capitol One didn%26#039;t give me all that great of rates either (9.7% on vehicles 2000-2003). I have a 700+ credit rating.

Best way to get loan? Financing for older vehicles?auto financing

You are going to be hard pressed to find a lender that won%26#039;t charge a higher rate despite good credit and keep your term short which will in effect make your payments higher. You have 2 options. Look for a truck that is 2000 or newer with under 100k on the miles. This will be about the same payment as you would have on the older truck with more miles. If you just have to have the older truck, then if you have equity in your home, take out enough equity to pay for the truck or a 401k account that you can pay yourself back.

Hope this helps.

Best way to get loan? Financing for older vehicles?

loan

As you%26#039;ve discovered, the best rates are for new and newer used cars. About the best you can do is finance the lowest amount possible for the least amount of time. It won%26#039;t necessarily affect the interest rate, but it will reduce the amount of interest you pay.

Since your credit rating is good, you may be able to get approval from Capitol One or Lending Tree, and then use that as a negotiating tool with the dealer financing.|||Since your credit is good, you might try a personal loan from a bank or credit union. The rates won%26#039;t be cheap, though...14 or 15%. Few banks like to loan less than $7500 nowdays on a vehicle and even fewer will finance a ten year old car.

Somebody please help me!!!!!?

kassie borrowed $1000 from the bank at a 12% interest rate. How much money will Kassie have to pay the bank over a six month period of time?

Somebody please help me!!!!!?mortgage rate

Assuming simple interest:

The formula is A = P(1+rt),

where P is the prinicple, r is the interest rate and t is the time (i years)

P = 1000, r = .12 and t = 1/2

A = 1000(1+(.12)(1/2))

A = 1000(1+.06)

A = 1000(1.06)

A = 1060

Somebody please help me!!!!!?

loan

12% of 1000 is 120. if interest is 120 a year, then half that would be 60|||This depends how the interest is calculated.

If the 12% is the annual interest rate, and the interest is applied monthly then 1% will be charged each month.

If the interest is compounded then in the second month 1% will be applied to $1000 + $10 from the first months interest.

So after the second month the amount owed will be 1.01*(1010) = 1.01*(1000*1.01) = 1000* 1.01^2

Hence after six moths the total amount repayable is 1000*1.01^6 = $1061.52

Note this compounding of interest has added an extra $1.52 in comparision to if 1% of $1000 = $10 was added each month.

If that was the case $1060 would be repayable.|||The interest is given by I = Prt, where P is the principal,

r is the yearly interest rate and t is the time in years.

So the interest is 1000*.12*1/2 = 60.

The total amount to repay is therefore $1060.

DOUBLE PAY query please read?

isnt it illegal not to be paid on a bank holiday? i have worked today, a bank holiday monday and my rate is normal. leave comments please. i am slightly annoyed at this!

DOUBLE PAY query please read?car financing

The employer determines the holidays and the pay for the holidays. Some employers pay double on certain holidays and time and a half on others, only if you worked on these days.

One thing is for certain, the employer must pay everybody the same across the board. He can%26#039;t pay you straight time and someone else time and a half on the holiday.

DOUBLE PAY query please read?

loan

Your employer sets the holidays for his company. It has nothing to do with bank holidays. Banks tend to have more of them than most employers.

What was in your contract when you began work for your employer?|||You need to be paid for the hours that you worked if you are an hourly employee. However, the company has no obligation to pay holiday pay at all, or to pay you both your regular rate and the holiday pay rate, unless they have a policy that specifies holiday pay.

In other words, there is no Federal %26quot;holiday pay%26quot; law (am assuming you%26#039;re a US employee here.)

Sorry.... :(|||Not really. You can be required to work Christmas with no overtime pay or anything. As long as they are paying you over minimum wage there is nothing you can do.|||This depends on where you work, their policies and whether you are in a union or not. Banks and government offices take many more holidays that some other employers, and the employees of other, regular employers do not get paid special wages. In retail, you work all the holidays, usually at regular pay.

Rather than have unvoiced expectations that you get angry about, why don%26#039;t you check your employee handbook or ask your employer about what holidays are paid for you.|||If you%26#039;re not working on a federally recognized holiday it%26#039;s pretty much a decision on the bank to pay you that rate. Only holiday%26#039;s recognized and observed by the government and states get you the pay your looking for.|||Check the terms of your contract, you%26#039;ll probably find that you don%26#039;t get double for bank holidays and this is perfectly legal if you have signed a contract.

How to calculate my investment in general investment account?

i have opened a general investment account recently. i put myr 500 for a period of 3 months. the bank stated that the profit rate for 3 months is 2.74. i%26#039;ll get 70% and the bank will get 30%.

how would i know how much i%26#039;ve made after 3 months?

thanks.

How to calculate my investment in general investment account?credit rating

The online calculator I use will not let me enter anything less than 1 year.

But, in 1 year, a $500 deposit at 2.74% with no additional deposits will only earn $14.

So even if this was for a whole year and you only got to keep 70%, you would end up with $9.80.

You would be better off putting the money in a regular savings account where you get to keep all of the interest.

I have a bad credit rating and I am in dire need of a loan?

I find myself in dispair and in need of a loan to save myself and my small business from complete ruin. I was turned down by my local bank, due to my credit rating and have no where else to turn, are there banks, or private persons willing to give loans to foreign individiuals either in there personal capacity or as a small bussiness

I have a bad credit rating and I am in dire need of a loan?rate my teacher

In other words, you want someone else to give you money you have no intentions of paying back, right?!! Sorry buddy, you%26#039;re on your own!!!

I have a bad credit rating and I am in dire need of a loan? loan

try prosper(dot)com. someone else might be willing to lend you money, but it is a real loan just like from a bank.|||You have already demonstrated that you can%26#039;t make a success out of your business. Why would you think that others are interested in your losing THEIR money too?

That is precisely why you can%26#039;t get a loan from your bank.

Bite the bullet and go to work for someone else.|||Call a lender and tell them you have so so credit and would like to purchase a home. There are lenders out there who will work to improve your credit score to get you approved. I have heard of credit scores improving up to 100 points!|||Credit ratings, personal, or business related, were designed to help lenders determine who is deserving of monies being loaned....if your personal credit is bad, and you NEED money to save your business, you need to re-evaluate your decisions with finances all together. Without a decent credit rating, personal or business, what do you have to offer to banks showing that you%26#039;d be a good payer?

Good luck.|||That sucks. Its a bad time for everyone right now. I don%26#039;t think banks are going to be going out of their way to someone with a bad credit rating. Keep trying tho! Good luck! Try looking for grants and stuff as well since you are a small buisness......|||Do you have anyone who trust you enough to be a co-signer? If so then that%26#039;s one way you could get a loan from a bank. As long as your co-signer has good credit. And you have to make sure you make all the payments when they are suppose to be made or it will ruin your co-signers credit as well.|||Bad credit is one of the worst problems to have... however there exists a solution. I will hereby talk from my personal experience. I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details, if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times,

I suggest you get as much information as possible online on this first, a good place to start in my humble opinion is astraight to the point ebook with question and answer I found : http://www.counselingcreditcarddebt.com|||Watch them.they are every where.who i am talking about?SCAMMERS.they have reck me and my family.I needed a loan of $7,000 but i end up paying up to $3,000 without getting my loan.All hope was lost until i saw an answer directing me to spring loans inc.My loan was giving to me within two days of application.If you really need a legit lender,dont listen to all those fake lenders out there who are looking for poeple rip off of their money.Please my dear,i will advice you to go striaght to spring loans.Here is their address.springloans084@yahoo.com.They will help you without stress.

Thanks

Lily Dave|||My name is max i resides here in Boston. I have been able to secure loan from a private lender. Mr, .Lomax milton. He is a private lender in united kingdom. Im testifying to his services that he is geunine and reliable. The loan im using now in refinancing my bussiness here i boston in states was obtained from LOMAX MILTON LOAN INVESTMENT. I do here by adviced you with all sincerity and with no doubt that you should contact the said private lender. Email:lomaxmilton_loan_investment@yahoo.... THE RELIABLE PRIVATE LENDER WITH LOW INTEREST RATE. CUSTOMER-FRIENDLY|||EASY LOANS CO-OPERATION gives out loans at low interest rate 3% to

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How do i calculate this? What formula do I use?

You wish to purchase your first home. The bank will only allow a bond repayment, which is no greater than 30% of your net monthly salary. Your gross salary is $8250 per month and you have deductions of 25% per month from your salary.

Q: Calculate net salary (amount after deductions)

A: $6187.5

Q: Maximum bond repayment you can afford?

A: $1856.25

Q: The bank offers a fixed bond rate of 13,5% p.a. compunded monthly, over a 20 year period. Can you afford a flat that costs $150 000?

A: ???

Please show me how to calculate this. Thanks.

How do i calculate this? What formula do I use?construction loans

The payment will be $1810.5.

You can look up bond factors, i placed a link to a bond factor calculator. Using a bond factor makes the calculation easy.

PMT= PV/1000 * bond factor. or for you 150,000/1000*12.07

You could use a financial calculator by entering the data as N=240, I=13.5/12, PV=-150,000, FV=0, and then press calulate then PMT.

How do i calculate this? What formula do I use?

loan

John K is right. You can also find the solution using Excel. a financial calculator is easiest:

N = 20 years x 12 months = 240

PV = 150,000 - the amount of the loan today

i = 13.5% / 12 months = 1.125

FV = 0

You solve for the payment. Therefore the monthly payment is $1,811.06 well within your limit.