Friday, October 14, 2011

Interest Rates

Part 1
1. APY is a percentage of interest being earned on deposited money in an account, based on the compounding method of the institution, assuming a 365 day year.
2. American Express Bank had the highest APY of 1.00% and Nova Bank had the lowest APY rate of .1%.
3. FDIC insured means that every account in a bank is insured for at least $250,000 if something were to happen to that bank.
4. Yes, I believe it is important for a bank to be FDIC insured. Putting money into a bank that isn't insured is risky especially in the economy today.

Part 2

State
City
Loan Amount
Product
Lender
APR
Wisconisin
Milwaukee
$250,000
30-year fixed
Flagstar
4.422%
Texas
Dallas
$250,000
15-year fixed
InterBank
3.375%
California
San Francisco
$250,000
30-year fixed
American-Interbank
3.918%
New York
New York Metro
$250,000
15-year fixed
Aurora Bank
3.544%
Nebraska
Lincoln
$250,000
5/1 ARM
AimLoan.com
3.118%
Michigan
Detroit
$250,000
7/1 ARM
Flagstar
3.527%


Based on the mortgage rates above, I can conclude that the current mortgage rates are very staggered depending on the product and the lender. A shorter mortgage plan has lower interest rates but require a larger payment. I can also conclude that the rates get high in more populated areas and lower in less populated areas.

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