Interest Rates

An interest rate is the rate at which interest is paid by a borrower (debtor) for the use of money that they borrow from a lender (creditor). Specifically, the interest rate (I/m) is a percent of principal (P) paid a certain amount of times (m) per period (usually quoted per annum). For example, a small company borrows capital from a bank to buy new assets for its business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are normally expressed as a percentage of the principal for a period of one year.
Posts about Interest Rates
  • 7 Core Ways to Compare Lenders and Products

    … a list of seven core characteristics when comparing lenders and products. Interest rate Term of the loan Maximum loan amount Probability of approval / speed to close Flexibility of use of loan proceeds Complexity of application (and time and effort it involves) / and the level of disclosure it requires of the borrowers personal…

    Blogtrepreneur- 8 readers -
  • Mortgage Rates Move Higher After Fed Raises Short-Term Interest Rates

    … loans to… you guessed it, mortgage rates. Historical Rates to Rise Gradually Since 2006, the Federal Reserve’s Open Market Committee has elected to keep the Federal Funds Rate as low as possible, and that’s why our mortgage rates have been so enticing. However, the committee recently decided to raise short-term interest rates, and mortgage rates…

    Matty Byloos/ RGR Marketing- 9 readers -
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