Archive for the ‘Interest’ Category

Searching For Yield

Friday, February 1st, 2008

Unless you reside under a rock, you have heard that the Federal Reserve cut the Fed Funds target rate from 4.25% to 3.00% in the last two weeks of January.  From the economic numbers that I have seen recently, it appears that the cuts were necessary in order to stimulate ...

Falling Mortgage Rates Creating Refinancing Boom

Thursday, January 24th, 2008

The Mortgage Bankers Association released their Weekly Application Survey yesterday, and it yielded some interesting statistics.  Applications to refinance are up 92% since the beginning of November, while purchase applications are up 7%. Refinancing applications represented 66% of the total last ...

Mortgage Rates Lowest In Over Two Years

Monday, January 21st, 2008

Unless you have been following the mortgage markets closely, you may have missed the dramatic fall in rates over the last few months. According to Bankrate.com, the National Average rate for a 15 year fixed mortgage was 4.93% over night, and 5.42% for a 30 year fixed mortgage. ...

The Rule of 72 and Compound Interest

Thursday, December 20th, 2007

“The most powerful force in the universe is compound interest”. Albert Einstein The rule of 72 allows one to quickly determine how long it will take, at a given interest rate, to double your money on and investment. For instance, if you have $1000 that is earning interest at the ...