5 Areas Where Interest Rates Matter!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!

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A Simple Plan For Investigating

Tips to Aid You When Buying A House In 2020

buying of a house is not an easy investment. If this is the case, what you should note is that you need to have your investment right. The thing you should note is that if you are planning to buy a house, you should understand the investment. If this is the case then you have to learn how much it will cost you to buy a house in 2020. If this is the case, then here are some of the things you need to put in mind.

One thing you should note is that there are several factors that affect the purchase of your home. If this is the case, you have to understand these factors so that you can make informed decision. When dealing with this, you should understand that the one thing that will affect the purchase is the geographical location. The location will affect the much you pay. The one thing you have to understand is that if you live in the country, then you will end up getting a much lower rate.

The other thing that will affect the price is the condition of the home. The one thing you need to understand is that the condition you get the house in will lead to it affecting the rate. If this is the case, you should note that if the house is in good condition then you should be ready to pay for a full price. Some of the things you have to understand are that they might be expensive, but this means less renovation.

For the people who are looking to make the purchase of their home for the first time, then you should understand that there is some good news. When you make the purchase of the house, then you should note that you will not have to pay for the stamp duty. This is going to be a great save for the people who are buying a house for the first time. Some of the things you should note is that when dealing with this investment then you should understand that there is the first home owners grant that is available.

When you purchase a home, it is best to leave the repairs to the experts. This is paramount for the people who are new to home buying. What you have to put in mind is that things you went through when you bought the house. You might have gotten help from these brokers when you made the investment. This being the case, then you will need to protect your investment. Some of the things you should note is that if this is the case, then you should rethink doing home repairs on your own.

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