interest: How The Fed Is Making Home Improvement Financing Less Expensive
- 05/24/08 05:01 AM
In three weeks, the Federal Open Market Committee will meet again and markets anticipate another cut to the Fed Funds Rate. Based on data compiled by the Federal Reserve Bank of Cleveland at the close of business yesterday, traders put the probabilities of the Fed's next move at: 62 percent chance that the Fed Funds Rate falls to 2.000% 36 percent chance that the Fed Funds Rate falls to 1.750% Currently, the Fed Funds Rate is 2.250%. Cuts to the Fed Funds Rate are meant to stimulate the economy by lowering borrowing costs for banks, businesses, and consumers. When less money … (0 comments)
interest: What's Your After-Tax Mortgage Rate?
- 05/12/08 08:20 AM
Many homeowners are entitled to two major tax deductions -- one for annual interest paid on a home loan, and another for real estate tax bills paid to government. Calculating your approximate tax credit is basic: Add mortgage interest paid and real estate taxes paid together Find your marginal tax rate Multiple your tax bracket by the sum of Step 1 So, for a homeowner that paid a combined $13,000 in mortgage interest and real estate taxes last year, and who is in the 28% marginal tax bracket, a tax credit of $3,640 may be due from the IRS. This credit … (0 comments)
interest: Simple Real Estate Definitions: Adjustable Rate Mortgage
- 05/05/08 10:51 AM
Adjustable Rate Mortgages are mortgages for which the interest rate is subject to change over time according to pre-defined rules. ARM is a common acronym for Adjustable Rate Mortgage and every ARM has similar features: An initial fixed period during which the mortgage rate doesn't change An initial interest rate that is charged during the initial fixed period An index that is used to calculate the new interest rate after an adjustment. An index is a variable and is usually assigned to LIBOR or Treasuries. A margin that is a constant added to the index to calculate the new interest rate … (0 comments)
interest: Spreadsheet Formulas: Calculating Home Payments
- 05/05/08 10:50 AM
For a lot of homebuyers, calculating a prospective mortgage payment is an online experience. For example, a search on Google for "mortgage calculator" returns 39 million options. Some people, however, prefer to plan on their local hard drive using spreadsheets. For these people, the hardest part is often figuring out what formulas to use. Interest Only Payments Home loans with interest only payments are much more simple to calculate than amortizing loans. Using the graphic at right as a guide, enter your loan size and your interest rate into two separate spreadsheet cells. Then, create a third cell and input the … (1 comments)
In three weeks, the Federal Open Market Committee will meet again and markets anticipate another cut to the Fed Funds Rate. Based on data compiled by the Federal Reserve Bank of Cleveland at the close of business yesterday, traders put the probabilities of the Fed's next move at: 62 percent chance that the Fed Funds Rate falls to 2.000% 36 percent chance that the Fed Funds Rate falls to 1.750% Currently, the Fed Funds Rate is 2.250%. Cuts to the Fed Funds Rate are meant to stimulate the economy by lowering borrowing costs for banks, businesses, and consumers. When less money … (0 comments)
;)
;)
