The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.

An interest rate rise might take the heat out of the mortgage market, but it will also chill the rest of the economy.

Interest rate

Interest rates, or interest on your mortgage, or how much interest do I owe on my credit card.

Rate is the periodic interest rate.

The Obama administration has enacted legislation aimed at helping individuals who are having difficulty making their monthly mortgage payments because of a decline in their incomes or a rise in the interest rate on their mortgage.

Nominal interest rate

Market interest rate

Effective interest rate

Interest rate (percentage)

America s Interest Rate Puzzle

China s Interest Rate Challenge

That's the interest rate.

166 effective interest rate.

The Real Interest Rate Risk

That's the annual interest rate.

In Mexico, all mortgages carry fixed interest rates, unlike the infamous exploding ARMs that left US homeowners ruing their choice of adjustable rate mortgages when interest rates rose. Mexican mortgages are indexed to inflation, but the state mortgage agency links that index to the minimum wage and makes up the difference if mortgage interest adjustments for inflation outpace wage growth.

To define an interest rate fully, allowing comparisons with other interest rates, both the interest rate and the compounding frequency must be disclosed.

Give an interest rate of ten .

But if the rate rises to 8 , mortgage interest payments rise to 24 , which, together with amortization, taxes, other debts, and necessary expenditures, may claim too much of the family budget.

If one borrows the equivalent of three years' income to buy a house, a mortgage rate of 6 means that 18 of one's income goes to interest payments, which may be tolerable.

But interest rate convergence caused economic divergence.

Mortgage interest rates fell below 5 in March and April, but have risen significantly since then.

The second adverse effect of deflation is to raise the real interest rate, that is, the difference between the nominal interest rate and the rate of inflation.

But when prices are falling, the real interest rate exceeds the nominal rate.

The growing gap between mortgage debts and house prices will continue to increase the rate of defaults.

But financial decentralization extends beyond interest rate liberalization.

C. Interest rate applicable to lump sum commutations

Let's say that the interest rate is 25 .

Her interest rate has of course gone up.

According to the followers of Knut Wicksell, the central bank must keep the market rate of interest near the natural rate of interest.

At present, the interest rate is less than 0.5 .

Emerging market interest rate spreads now are abnormally low.

Italy, however, chose to squander that interest rate advantage.

I'm going to charge the interest rate on that.

But leading banks are also accused of illegal behavior inducing people to borrow, for example, by deceiving them about the interest rate that would actually be paid, while misrepresenting the resulting mortgage backed securities to investors.

Because the inflation rate is also about 2 , this implies a negative real interest rate, which is confirmed by the interest rate of 0.6 on ten year Treasury Inflation Protected Securities (TIPS), which adjust interest and principal payments for inflation.

And it is the real interest rate not the money rate that counts for economic growth.

That way, limited interest rate spreads could do the work of its missing exchange rate mechanism.

The Fed is buying Treasury bonds and long term mortgage backed securities at a rate of 85 billion a month, equivalent to an annual rate of 1,020 billion.

Gold prices are extremely sensitive to global interest rate movements.

One may ask how can an interest rate be negative?

One sure way to reduce the savings rate in China would be to develop an American style mortgage market there.

But today is one of those days when I don t think that Greenspan s failure to raise interest rates above the natural rate to generate high unemployment and avert the growth of a mortgage finance bubble was a mistake.

Domestic deflation means that the real interest rate on Japanese bonds is higher than the nominal rate.