Tag Archives: Rates

Market Analysis

Why Does Market Movement Fluctuate The Mortgage Rates

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The rates generally rally up with news of weak housing data. Typically mortgage rates fluctuate with the movement of market prices for mortgage-backed securities. It is important to determine from qualified advisors the potential movement of rates with current economic trends and how lenders are typically responding with their rate offers, and their marketing messaging. Buying a home is likely to be the largest, most significant purchase of your life. So while it is part of the “American dream,” it can be equally as exciting as it is stressful for many people. Down payments represent the amount of cash investment that buyers have available to put towards the purchase price of a home. Depending on the type of loan, there may be restrictions on the down payment, such as the length of time for which the cash has been in the buyer’s possession, the source of those funds, whether the funds were a gift or not, etc. Furthermore, often times prospective home buyers estimate their down payment requirements by simply multiplying the percentage of down payment by the value of the home, which can be incorrect. Involving your lender early can help you with understanding how much of a monthly payment you can afford, how to calculate the down payment needed and ultimately the maximum purchase price of a home. The principal is the final loan amount needed to secure the home purchase. The principal may or may not include all of the closing costs rolled up into the loan. Securing the right mortgage rates for home purchase loan may involve the consideration of many factors, several of which are mentioned below.

The duration of the loan is specified by the number of months or years for which the contract is scheduled. If payments are made exactly according to the schedule, mortgage loans are calculated to expire when the final payment in the series is processed. The standard length of term for a mortgage is 30 years, but other common terms are 20 and 15 years, with 40 year terms becoming more popular. Mortgage Interest Rates and APR are two key terms used in mortgages. If you’re not careful, you might confuse or otherwise not fully understand the difference between the two. The mortgage interest rates to purchase home represent only the rate itself, whereas the APR more accurately represents the “true” cost of the loan by accounting for the added costs of lender fees and spreading those fees out across the life of the loan. In this sense, the APR provides an accurate measurement of the cost of the loan over the entire length of term. It is always advisable that you compare both the interest rates as well as the APRs when competing lenders submit mortgage rate quotes to you.

Locking in home purchase mortgage rates is very important. Interest rates can vary from day to day, which means that as a savvy consumer you may want to pay close attention to interest rate tables or establish enough rapport with your lender to make sure you are immediately notified of favorable interest rate drops when home purchase offers are in play. At some later point in the home buying process you may work with your lender to lock-in your low interest rate. Locking in a rate means that the interest rate for your loan is now set and will not change, regardless of the market fluctuations which occur after the rate has been locked. Locking in a rate too early in the purchase process however, could provide you with a false sense of security if the rate expires prior to the loan closing. It is advisable that you work in tandem with your lender to ensure that the lowest possible rate is locked in for your loan at the appropriate time.

Market Analysis

Volatile Market Conditions Affecting Exchange Rates – Gerardassociates

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We continue our daily look at factors affecting currencies allowing some insight into market conditions affecting exchange rates. Cash and income timing for UK Pensions and QROPS should be considered to maximise the Pension, QROPS and investment income and benefits taken.
Investment market volatility and currency exchange remains a challenge. Things are still very volatile and we are in unique global influencing territory. In conjunction with investment returns, currency exchange continues to concern many expats with UK Pensions, QROPS and now QNUPS.

Sterling gained back some of its previously lost ground yesterday after high CPI figures prompted investors to hedge bets that the UK may increase interest rates sooner than expected to tackle rising inflation figures. A 1.4% rise in UK share prices also aided sterling.
Sterling’s gains were mainly evident against the US dollar which saw it rise to a 2 day high of $1.5189. Overall the pound was 1% up from the day low $1.4963 which was caused by the previous days comments from credit ratings agency S&P, which suggested that the UK’s Triple A rating was still at risk.
CPI data excluding energy, food, alcohol and tobacco was up 3.1% Year on year which was a 0.2% gain from May’s 2.9% and still way above the Bank of England’s inflation target which stands at 2.0%.
The figures will give strength to people like Andrew Sentance, who would argue that the UK is running the risk that inflation expectations will be de-anchored and will become a problem in the medium term.
Bank of England policy maker Andrew Sentence voted for a 25 basis point interest rate increase last month, and has been thought to have done so again this month.
An increase in interest rates would appeal to investors as it would increase the yield on sterling investment.
Against the euro sterling started the session around €1.1940 but gained ground shortly after, as CPI data was released and Moody’s ratings agency downgraded Portugal by two notches from AA2 to A1. By midday GBP/EUR briefly jumped back above €1.20 to reach a day high of €1.2020.
However these gains were short-lived, as Greece managed to sell six-month Treasury bills to the market in its first debt offer since securing emergency loans in May. This pulled GBP/EUR back down to around €1.1970. The positive news helped the euro to reach $1.2737 a two month high.
Other data showed that UK retail sales rose 1.2% in June from the previous month, their best showing since March.
Although the UK is showing positive data release in various sectors, some investors do worry that the economy may suffer if interest rates were to rise earlier than expected and Bank of England policymaker Adam Posen stated on Monday that the UK may slip back into recession due to looming fiscal issues and problems in the EuroZone.
Gerard Associates Ltd advises expats and people considering living abroad on the technical and currency options available for Pensions, QROPS, QNUPS and investments in a clear format allowing all customers to make an informed choice. Our service encompasses Pensions, investments, currency exchange and guidance on taxation in most popular ‘sunnier’ climates. This with the re-assurance and security of UK authorised and regulated advice – essential tools to avoid the offshore casino.

Market Analysis

Open Market Option – To Shop for Best Annuity Rates

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As an investor who is looking out for various annuities, the open market option is your right to shop around so that you use it to your complete advantage. It is indeed very baffling to find that most of the insurance shoppers do not take out the necessary time to shop for a good annuity rate. By doing so, people are not only missing out on a lot of money, they also might not have secured the right annuity offer. That is the basic reason why open market option becomes very crucial. Through the open market option, every individual has the right to get annuity quotes from varied pension providers.

When you shop for your clothes or accessories, you take time to go through the entire collection. Similarly, when you are shopping for your annuities, you need to take out as much time or probably even more as your future depends solely on the kind of annuity offer you zero down on. Making a comparison across different annuity providers will also elucidate on how and where you could get the best deal.

There is a lot of disadvantage that one might be at if they do not use the open market option while shopping for their pension plans. First and foremost, their retirement income might suffer if the applicant qualifies for enhanced annuity which many of the retirees would be eligible to get. So, it is strongly recommended that in order to get the best of annuity rates that are available in the market, you have to indulge in open market option so that you get access to numerous annuity quotes so that you could make an informed decision that will help you in getting the maximum annuity returns post your retirement.

Market Analysis

Find The Best Guaranteed Annuity Rates Using The Open Market Option

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Guaranteed annuity rates are the most popular form of annuities and can be found using the open market option. The open market option was introduced to let retirees find guaranteed annuity rates from the entire market avoiding being forced to purchase the rates from the pension company they had saved with.

There are many different types of annuity that can be purchased at retirement, but by far the most popular is the guaranteed annuity, this is because of the guarantee that the income cannot fall during the life of the retiree. Those in retirement require certainty of income and do not want to worry about watching their annuity rates. Of course because the rates on guaranteed annuities are fixed there is no scope for income increases during retirement, meaning the longer you live inflation could eat into the buying power of the income.

Just because the name guaranteed annuity sounds as though the income cannot increase does not mean you cannot have escalating income, you can purchase an option for your guaranteed annuity to increase each year either by a fixed percentage or by the retail price index, this will mean the starting income would be lower than a guaranteed annuity without the options.

There are other options you can purchase when you buy guaranteed annuity rates, one of the most important and popular options is the continuing pension for spouse or partner, this means in the event of your death the pension can continue. The pension can continue at a percentage of the pension or a the full rate, again the starting income is lower and the more you wish to be paid as a continuing pension the lower the starting income of the guaranteed annuity. Other options that can be purchased at the same time are a guaranteed payment period and value protection, which pay out a amount to protect you if you die in the early years of retirement.

Forex Trading Articles

Forex Trading Rates – Forex Exchange Rate at Lowest Conversion Costs

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Forex Trading Rates

You need some real hard research on the internet to identify the best foreign exchange rate as there are several options available with a host of brokers. Based on the provider, the forex currency rates can vary widely.

You can purchase currency with the help of a credit card, a debit card, cash advance or even ATM withdrawal. Unless you get a hang of the best forex rates, you cannot succeed in the volatile speculative trading sessions.

Check out different companies to know the lowest conversion rates so that you can keep charges to a minimum. Exchanging currencies require large amounts of conversion fee, but there are some companies that do not charge you any money for that. You can use your credit cards also to get the best forex exchange rate. The rate can vary due to a small event in any part of the world.

A political or socio economic change in some part of the world can have a ripple over effect in mainland US or in a far corner of the globe. To get the best exchange rate, you need to be on top of the news as they unfold and choose the best company where you can get the best deal. You can search online as it is easy for you these days to know all about the best forex exchange rate at the click of a mouse from the comfort of your home. Forex Trading Rates

Check companies that specialize in forex

Primarily, forex is required by you before traveling to a foreign country. By anticipating how much you would spend, you can get your finances in order after checking out the various exchange rates and the charges involved for conversion.

The best way to keep your costs to the minimum is to look for companies that specialize in forex and factor in the fees while calculating how much you need to spend.

Your best bet would be to go to the various websites and check out the rates as well as compare the charges involved. Use your currency to buy the foreign money by paying the best rates and holding the legal tender before you enter the country of your choice. Knowing how much you can spend is vital for getting the best forex exchange rate. Forex Trading Rates