Property investment constitutes a large and longterm commitment to an individual. Describe the outcome of taking...

Property investment constitutes a large and longterm commitment to an individual. Describe the outcome of taking a property loan during fluctuating interest rates. This is from the book financial markets and instituons global edition 9th edition by mishkin.

Solutions

Expert Solution

Answer:

The property credit or loan can be applied and taken on the basis of variable rate or the fixed rate. The fixed interest rates don't change during the tenure of the credit or loan. Alternately, the variable interest rates could vary at a periodic basis. The interest rate may reorganize on a month to month basis, quarterly basis or yearly premise, contingent upon the conditions of the loan. On the off chance that taking fixed rate loan when the interest rate is changing, it might reimburse a higher than normal interest rate for the complete tenure of the loan. For variable rate loan, the periodic monthly instalments may vacillate significantly because of the ever-changing interest rates. The greater interest rates prompts higher periodic monthly instalments, a bit of the principal in addition to the interest collected for the month are needed to recompense each month.

HAPPY TO ASSIST YOU, PLEASE "UPVOTE" THE SOLUTION IF HELPFUL. THANK YOU :)

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

1.Project finance is considered as a long-term investment with a commitment of large amounts of resources....

1.Project finance is considered as a long-term investment with a commitment of large amounts of resources. Determining project costs involves taking the information gained from assessing needed resources and A. asking the client for at least twice as much funding. B. using it for scheduling purposes. C. adjusting the project purpose as necessary. D. translating it into a realistic budget. 2.An investor, Mr. Trix wants to finance RM 500,000 in your new investment to expand your project overseas. Since you...

A. Describe the differences in the underwriting process for an Investment Bank between a firm commitment...

A. Describe the differences in the underwriting process for an Investment Bank between a firm commitment securities offering and a best efforts offering. B. What are the risks assumed by the Investment Company and those assumed by the Client for each of these two types of offerings. (I want you to type the anwer)

Describe a situation where a loss on the sale of business or investment property is not...

Describe a situation where a loss on the sale of business or investment property is not currently deductible, and explain why. In the post, discuss how a disallowance of a loss may impact your decision on when to sell an investment or to whom. Please do not copy and paste. Thank you!

Describe the phenotype of an individual with the following condition: XY chromosomes, mother exposed to large...

Describe the phenotype of an individual with the following condition: XY chromosomes, mother exposed to large amounts of a DHT receptor antagonist during critical window of sex development in pregnancy. Include: gametes, internal genitalia, and external genital Describe a mechanism that could cause an individual to develop testes, external male genitalia, and both internal female and internal male genitalia.

Describe the phenotype of an individual with the following condition: XY chromosomes, mother exposed to large...

Describe the phenotype of an individual with the following condition: XY chromosomes, mother exposed to large amounts of a DHT receptor antagonist during critical window of sex development in pregnancy. Include: gametes, internal genitalia, and external genitalia Describe a mechanism that could cause an individual to develop testes, external male genitalia, and both internal female and internal male genitalia.

Suppose large forest fires result in large destruction of capital. Describe how this shifts the investment...

Suppose large forest fires result in large destruction of capital. Describe how this shifts the investment demand function and the labor demand function.

Subjects