Newsletter - 4 Times a Variable APR Makes Sense

This is your Newsletter. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ [LPB]( [LPL]( [LetmePayday Newsletter]( You Might Like     [Learn more about Jeeng](  [4 Times a Variable APR Makes Sense]( [4 Times a Variable APR Makes Sense]( When taking out a loan, it pays to weigh the pros and cons of a variable interest rate Key points - Variable interest rates make sense in specific situations, like when you plan to buy and sell a house in a few years or want to pay off a loan early. - Variable-rate loans can be risky though because interest rates can go up. - Fixed-rate loans are almost always more dependable and easier to budget for. When it comes to borrowing money, one of the decisions you’ll be asked to make is whether you want a variable- or a fixed-rate loan. A variable interest rate is a rate that goes up and down over time. Because variable rates are tied to an underlying benchmark interest rate, they mimic what’s happening with that underlying rate. For example, the variable interest rate increases if the benchmark rate goes up. While fixed-rate loans are more common, you may be surprised to learn that a variable-rate loan works best for you in certain situations. Here are four of them. 1. You don’t expect to keep a loan for long Let’s say you’re moving to a new city but know you’ll only be there for two or three years. You’re buying a home and notice the variable interest rate is lower than the fixed rate. The less time you carry a mortgage with a variable interest rate, the less chance that the underlying benchmark will increase and your variable rate will go up. So it may make sense to go with a variable rate when you know you’re not going to hang on to the loan for long. [[icon] Read MoreÂ](  [Online Personal Loans up to $50,000](  [Credit Union vs. Banks: What’s the Difference?]( [Credit Union vs. Banks: What’s the Difference?]( The fundamental difference between a bank and a credit union is that banks have shareholders and operate to make a profit as the primary goal. Credit unions are not-for-profit financial institutions. With this model, each account holder — also known as a credit union member — essentially “owns” a stake in the credit union. While banks pass profits on to shareholders, credit unions reinvest profit into the credit union — often in the form of lower rates and fewer fees. Banks and credit unions each have pros and cons, and choosing a financial institution is a personal decision so it’s important to know the benefits and drawbacks of both. Here’s what consumers need to know before choosing one. Which Is Safer, Credit Unions or Banks? Both types of financial institutions are equally safe. From small local credit unions and banks to those that operate worldwide, the federal government insures each one. What Is the FDIC? The Federal Deposit Insurance Corporation is a federally run government agency. It insures up to $250,000 per person, per approved bank. What Is the NCUA? The National Credit Union Administration is also a federally run government agency. It offers the same protection for credit union members that the FDIC offers to banks — $250,000 per person, per approved credit union. [[icon] Read MoreÂ](  You Might Like     [Learn more about Jeeng]( Connect with LetmePayday on Social Media Pages [Facebook]( [Linkedin](    [Unsubscribe](