What Is a Ginnie Mae Security?

June 30, 2024 No Comments

A: Ginnie Mae (or Government National Mortgage Association) allows mortgage lenders to obtain a better price for their loans in the capital markets. This allows lenders the flexibility to use the proceeds to make new mortgage loans available to additional borrowers. How Ginnie Mae Securities Work A

Overdraft or credit cards: Which is better to borrow money?

June 30, 2024 No Comments

A: If you have an overdraft line of credit at your bank, you can spend more than the amount in your checking account. In exchange for this service, you’ll pay the bank interest on the amount by which you overdraw your account. Some overdraft lines

Paying off debt with a balance transfer

June 30, 2024 No Comments

A: Say you’ve accumulated a large balance on a high-APR credit card. Rather than paying interest every month to slowly chip away at your debt, a balance transfer may be a good option for paying it off at a lower interest rate. Many credit card companies offer

Revolving Credit vs Installment Credit: What is the Difference?

June 30, 2024 No Comments

A: There are two fundamental types of credit repayments: revolving credit and installment credit. Installment credit is paid back with scheduled, periodic payments; installment loans involve the gradual reduction of principal and eventual full repayment, ending the credit cycle. In contrast, revolving credit contracts, in

Should commercial and investment banks be legally separated?

June 30, 2024 No Comments

A: Following the financial crisis of 2008-2009, much of the blame was directed at large financial institutions that took on high levels of risk in the years preceding the crash. From 1933 to 1999, investment and commercial banks were legally separated and could not be

Should I pay my mortgage with my credit card to earn credit card rewards?

June 30, 2024 No Comments

A: Paying a large, recurring bill with a credit card certainly sounds like a smart way to maximize the points, cash back or frequent flier miles you earn from your card. But if you try to pay your mortgage with your credit card to earn

Simple versus compound interest

June 30, 2024 No Comments

A: When analyzing the terms of a loan, it is important to consider more than the interest rate. Two loans can have identical principal amounts, interest rates and repayment lengths but significant differences in the amount of interest you pay, especially if one loan uses

Understanding the Five Cs of Credit?

June 30, 2024 No Comments

A: Financial institutions attempt to mitigate the risk of lending to borrowers by performing a credit analysis on individuals and businesses applying for a new credit account or loan. This process is based on a review of a five key factors that predict the probability

What Affects Your Credit Score

June 30, 2024 No Comments

A: Your credit report provides a snapshot for prospective lenders, landlords and employers of how you handle credit. For any mortgage, car loan, personal loan or credit card you have had, your credit report lists such details as the creditor’s name, your payment history, account

What are some examples of common credit card reward program benefits?

June 30, 2024 No Comments

A: As of 2014, there are almost as many different rewards programs are there are credit cards. Common benefits offered include: Air Travel Miles Many credit cards partner with specific airlines and offer more generous air travel miles with one. There are many airlines cards

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