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What has caused the interest rate on loans to go down to Venice?
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What is asset demand for money?
Asset demand for money is dependent on interest rates. The money slope goes down if interest rate goes down. In contrast, money slope goes up if interest rate goes up.
Why does deman curve slopes downward?
1. Wealth effect: Price down means consumers are wealthier than if the price was higher, so they buy more. 2. Interest rate effect: As price goes down, people save more money. This increases the supply of money for loans, which in turn decreases their cost, which in turn drives up investment spending (GDP = C + I + G + NX, remember, consumption + investment + government spending + net exports). 3. Because the interest rate is lower as price goes down, investors will be more likely to invest in other countries (which will be more likely to have relatively higher interest rates), which drives up the NX part of the equation.
What was the root cause of the housing bubble?
One of the most important factors in causing the 2005-2006 housing bubble was Allen Greenspan's decision to keep the Fed Funds rate at very low rates for a long time after the 2001 dotcom crash. This caused credit to be very loose, and helped people obtain loans and buy houses that they weren't qualified to have. It also caused housing bubbles elsewhere, especially in European countries. Spain and the UK were also hard hit. Another important factor was the Democrat controlled congress passing laws that allowed and even encouraged people to buy loans. Both sides could see this bubble bursting. The start was decades earlier when Carter forced banks into making 10% of their loans in communities that didn't have people wanting to buy in with good credit. The Community Reinvestment Act forced banks to search for people to buy in these areas. A great idea for the areas, and a very bad idea for banks. Clinton, in 1996 removed restrictions on verifying legal income. This opened the door to even more bad loans in bad areas. To compensate for these bad loans, banks had to see larger interest rates. The previous limits to interest was also removed during the Clinton Presidency. The ONLY President to try to curb this issue was President Bush. He was shot down by the Democratically controlled Congress as being reactionary.
Can you give me a sentence with the word depreciation?
Interest rates also have to be held down to secure a currency depreciation.
What are the advantages of a lower interest rate?
When you borrow money - either loan, overdraft, credit card etc..... - you will not be paying back as much interest. However, there is always a down side. You will not be getting as much interest on your savings. I say borrow a million, and blow the lot!!!!!
Does the USDA give out home loans?
Yes, the USDA does offer home loans. For example, right now, if you have a credit score of at least 600, they are offering loans with an interest rate of 4.5% and no money down.
Where can one find out the interest rates of WAMU home loans?
Washington Mutual offers a variety of mortgages. The interest rates of these home loans will depend on the buyer's credit history and his ability to make a down-payment, among other factors.
How does one deal with personal debt loans?
There are several ways to deal with personal debt loans. You can consolidate all of the loans or can use the ladder approach as several famous financial gurus suggest. Pay the highest interest rate first then move on down the ladder to the next highest interest rate.
Where can one obtain no down payments home loans in the UK?
Most banks offer no money down home loans. It is not adviced though because they have higher interest costs. If you still want this loan, you can get one at the HSBC bank
What is the Lowest interest rate for educational loan?
The interest rate on federally guaranteed student loans are set by the government and change on July 1 of each year. Every lender must offer this same set interest rate. Rates are going down this July 1, so it is a good time to take out new loans. There is no need to shop around at different lenders for Stafford loans, since the rates are all the same. Beware of private student loans, the interest rate is always higher and benefits are always lower.
Why do people choose variable rate loans?
Because you have the SLIM possibility that the interest rate could go down as opposed to up. With student loans, 9 times out of 10 it will go up.
How difficult is it to get mortgage loans with bad credit?
It is not the difficulty of attaining a loan, but attaining a loan with a reasonable interest rate or down payment requirement. After events such as filing for bankruptcy or having bad credit, people giving out loans may require as much as 25-30% of the loan in a down payment with extremely high interest rates.
Who qualifies for home loans from the Federal Housing Administration?
The Federal Housing Administration (FHA) and the Veterans Administration (VA) help home buyers obtain low-interest, low-down-payment loans.
How much does a repossession damage your credit?
7-10 years and damage is bad. You will have to pay HIGHER interest on loans and BIGGER down payments.
We took out student loans for our son to go to school Now that he is out of school and established his own credit we want him to get the loans out of our name How can this be done?
In the US, since interest rates just went down on July 1, your best option is for your son to consolidate the loans in only his name and he gets the benefit of locking the interest rate in. If you or your son need help consolidating the loans, click on the link at the bottom of this text box.
How do military personnel loans differ from other loans?
The typical differences for military loans is that those backed by the VA are generally subject to lower interest charges and there is less need for a down payment. Additionally, the credit checks are less stringent in that a lower credit score is usually accepted.
What is the interest rate on the subsidized and unsubsidized Stafford loans?
Interests rates for both Subsidized and Unsubsidized Stafford loans as of July 1, 2006, are not at a fixed rate of 6.8%; Parent PLUS loans are also now fixed at 8.5% not matter if you use Direct Lending or FEELP. Hope this helps. For loans borrowed as of this day, Sept. 6, 2004, the interest rate is "variable". It is determined once a year in June and can go up and down. Find out what the interest rate on the 91-day T-bill sold for the prior June 30th and add 1.7%. That will be your new interest rate for the year beginning July 1.
