So many times I have heard the question “what’s the rate” or “what are rates today” or “what rate did you get?” I’m sure I’m not the only one to hear these statement/questions either. Many people say these things all of the time.
From the title of this article, if interest rates are not the importance of the loan, what is?
Let me start by saying interest rates are important, I do understand this. Obviously, rates set the payment and determine how much interest is paid. However, on a calculator (mortgage or other loan), the rate is changed. What this means is that the rate is secondary to the loan calculation, a.k.a. amortization schedule. That’s right the amortization is more important than the rate. This is just one key factor to understanding the bank that I discuss in Barking With The Big Dogs so people can understand the inner workings of the bank. But rather than go into the real meaning behind the amortization right now, which is not to simply just show numbers with payments and interest like everyone else does, let me continue with a question…
If rates were the importance of a loan, then why do banks and credit unions build new buildings when rates are at their lowest?
(You can get the answers in Barking With The Big Dogs…but only for a limited time while it’s still available. Get a copy today before the copies are gone.)
Why is all of this important to you? It’s your money, that’s why!






