What is Home Equity Line of Credit? A home equity line of credit or HELOC is a revolving line of credit, based on the equity you have built in your home. How does Home Equity Line of Credit work? It is very similar to a credit card borrowing limit – the lender fixes the …
In the past, we have talked about banks and credit unions. But they sound very similar. Can you please help me understand them better? Both banks and credit unions are financial institutions that help people with their basic financial needs – they accept deposits, provide loans, offer checking and savings accounts, credit cards, etc. So …
I recently heard about FHA Loans on TV. But what is an FHA loan anyway? FHA stands for Federal Housing Administration. An FHA loan is a mortgage issued by an FHA-approved lender. These loans are meant for borrowers with low-to-moderate income, and are insured by the FHA. What are the advantages of FHA Loans? …
What is a municipal bond? Municipal bonds are debt securities issued by cities, states, counties, or other local governments. They are also commonly known as Munis, and could be issued for 1 to 10 years. Why is a municipal bond issued? These bonds are issued to raise funds for public projects like highways, schools, …
What Is LIBOR? LIBOR stands for London Interbank Offered Rate. It’s the interest rate at which major banks lend to one another for the short-term in the international market. Why is LIBOR important? LIBOR serves as a well-accepted benchmark interest rate, based on which the interest rates for many other loans are decided. This …
What is a treasury bond? A treasury bond is a debt security issued by the government, with a maturity of 30 years. It is also commonly called T-bond. How do treasury bonds work? Treasury bonds pay a fixed rate of interest. When you buy a treasury bond, you get the interest or coupon every …
Introduction to Interest Rate for Kids and Teens This video explains the concept of interest in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about rate of interest, or used as a money & personal finance resource by parents and teachers as part of a …