Welcome to InterestRates.com, the online resource dedicated to tracking the ups and downs of borrowing money in the world of lending. Most people know that the interest rate is the percent charged, or paid, for the use of borrowed money. Interest is charged whenever money is being borrowed, and interest is paid whenever it is being loaned. The Glossary of Economics Terms sums interest up as "the yearly price charged by a lender to a borrower in order for the borrower to obtain a loan. This is usually expressed as a percentage of the total amount loaned." Since interest rates are percentages of the total loan amount, borrowers will always want the lowest interest rates possible and lenders will seek the highest.
The banks are willing to pay their depositors a nominal interest rate because they use that same money to make loans to other people. The banks obviously have to charge a higher interest rate when they make their depositor’s money available as loans or they would not make any money on the loans at all and would quickly go out of business. As a borrower however, your job is to try to get the lowest interest rates with the best terms possible whenever you borrow money, regardless of what you might be borrowing it for. The viability of mortgages, home equity loans, auto loans, certificates of deposit, savings accounts and credit cards all depend on the interest rates charged.
However, not all types of loans earn the same rates of interest and loans with longer duration and loans with more risk are usually hit with higher interest rates. Because the interest rates are essentially the price paid to borrow money, the rates are determined by the supply loanable funds currently available in the economy and the consumer demand for those loans.
Even though the current interest rates in the U.S. today are subject to many external forces in the economy, InterestRates.com is a comprehensive resource to help consumers learn more about the how money is borrowed and paid back and how to get the best rates for the types of loans you may be considering. The largest loans most consumers will ever borrow are usually their home mortgages and even though current rates are at record lows, many buyers won’t be able to qualify for a home loan today because most lenders have significantly tightened their loan qualification guidelines as well as their credit check, income verification and appraisal processes. The loan qualification process for purchasing new automobiles and other big-ticket consumer goods have also gotten a bit tighter recently too.
Whether you want to borrow money, or lend it, InterestRates.com will help you save time, stress and cash. In addition to tracking and documenting the best current interest rates, interestrates.com also offers access to multiple tools to check out all of your loan options and provides up-to-date information so you can compare the different rates and make sure you’re making the best deals possible in today’s volatile economic landscape.