Posts Tagged ‘question’

Opt for floating interest rate for home loan

January 14th, 2010

With increasing interest rate, the consumers awareness has also increased while taking a home loan. The consumers most often question is whether to go for a fixed rate or floating rate for home loan. First it’s very important for the consumers to know what they meant for?

Under fixed rate scheme, the interest rate stays same for the entire loan term. It doesn’t affected, if the interest rate moves up in the market. Fixed rate is more expensive than floating rate, but it protects consumer against constant rate hikes. While floating interest rate depends on the current rate of interest in the market. If the interest rate moves up, the monthly payment will also increased.

In the current scenario, it is advisable to go with a floating interest rate for home loan. Why? The market research indicates, the floating rates are favorable for the consumers. It seems more attractive than a fixed rate home loans, because there is no strong sign of an increase in the interest rate. This is why the most of consumers go with a floating rate for home loans.

Here is another another reason to go with a floating rate. The cost of floating rates will be lower than a fixed rate loans even after hikes in interest rates in the market. This is very strong point to consideration. The fixed rate is always higher up to 7%, if the rates increases and do not witness hike more than 2%, remains still lower. The increased rates are not for the entire loan tenure, it settles down when market rates comes down.

Today, the banks are introducing fixed + floating rate home loan schemes to attract the consumers. In these schemes, the fixed rate is set for a particular tenure which subsequently convert into the floating rate after the end of the fixed rate tenure. The rates given in these schemes are really lower which is set for the 2 or 3 years. After the end of the fixed rate tenure, the rates are shifted to the prevailing interest rate in the market. Such a schemes are also advisable which gives the security of fixed rate and the benefits of the floating rate.

 

Habibulla Antule is a financial advisor and consultant and have provided his expertise to many financial institutions for loans and insurance

Article Source:http://www.articlesbase.com/loans-articles/opt-for-floating-interest-rate-for-home-loan-1722195.html

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Is The Stock Market Starting to Fail?

November 3rd, 2009

The proverbial question is we in a V shaped recovery or a Bear Market Rally. Without predicting (One word every true trend follower hates) there are signs becoming apparent the stock market rally from March might be coming to an end. There are technical indicators which are pointing to weakness as well as recent economic figures are beginning to disappoint investors hoping for a recovery. The stock market is down approx 5 percent from its 2009 peak of 1097.91 on Oct. 19. What more so troubling is that the SP 500 index is below its 50 day moving average. The 200 day moving average is currently at 981. A break below this number would be considered very negative. More so there have been distinct divergences between current price action and numerous momentum indicators.

Besides the technical’s there are the fundamental issues…such as the Commerce Department figures released on Oct. 30 showed Americans cut spending in September, the first reduction in five months. Foreclosures are increasing…unemployment has been increasing. Simple question… how can companies be making money…people are spending less… people are losing their homes… people are losing their jobs? It is pretty obvious to question this rally as so many have.

However Obama has come out with his recent radio address.. “We have made progress”!

Maybe I am missing something but I do not understand what progress…except as trying to convince people we are out of the woods.

Paul Tudor Jones has come out very loudly and stated that the rally since March has been a Bear Market rally. As well Christopher Wood, chief strategist at CLSA Ltd has told his readers after Friday’s action to go short the US Stock Indices. Nouriel Roubini is sounding much more of the profit of doom again.

Trend followers do not make predictions. This is not my goal but the green shoots are looking very unhealthy and the ramifications can be very hard for stock market investors. When commodity trading and investing it is paramount to have a plan and have the discipline to stick with it. There are too many investors who bought this stock market rally without a plan. Trading without a plan can destroy a portfolio.

Futures Trading is Risky. People Can and Do Lose Money

Andy Abraham

Myinvestorsplace.com

AJPartners.com

My name in Andrew Abraham. I am a commodity trading advisor – co manager of a commodity pool who adheres to the philosophy of trend following.

Article Source:http://www.articlesbase.com/wealth-building-articles/is-the-stock-market-starting-to-fail-1414164.html

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