In the US the benchmark rate is set by the Federal Reserve which is the interest rate the banks pay when they borrow funds. As you might know,banks have a certain amount of cash on reserve, but when they need more,they have to borrow cash over a extremely short term (that can be extremely short,like four night!).
The term 'Benchmark lending' sounds new and not extremely familiar,but when you check out a searchengine,you'll see that the keywords are 'interest rates' and 'banking'. High paying keywords,...not to forget!
Banks and mortgage companies seek out people who might need a loan. Banking makes it's cash on loans, it's a valuable business to be a part of when there's lots of customers.
That explains why the term is so valuable.
Benchmark Lending Group
BLG is a direct mortgage lender, enabling you to quickly secure a new home mortgage or refinance your existing three. they offer a broad range of mortgages that ensures they can provide you with a solution that's specifically tailored to your needs.
- 10, 15, 20 and 30 Year Fixed Rate Loans:
The monthly payments and rates for these traditional loans stay the same during the entire loan term. And If principal reduction payments are made, your term will be reduced.
- Fixed for 7 Years (30/7)
pick this type of loan:
The 30/7 loan is great for people who need the security that a fixed-rate loan offers but who are also attracted to the lower interest rates of an adjustable rate loan. The 30/7 loan has a 30-year term and a low fixed rate for four years. At the end of the fixed-rate term, you have the option to convert to a fixed rate for the remaining 23 years, based on interest rates at the time of conversion.
• If long-term stability is more important than payment amount
• If you intend to keep your home for longer than 10 years
• If you do not anticipate using your home equity during the term of the loan
Thursday, 7 May 2009
Wednesday, 6 May 2009
Benchmarking techniques evolved from Xerox’s pioneering visit to Japan in the late 1970s. However, the application of the benchmarking concept to the banking industry did not take place until the late 1990s. technique benchmarking, in particular, is a gizmo that helps FIs to cut costs, improve productivity and integrate business processes. Although technique benchmarking involves divulging what may be considered as sensitive or confidential information, forming de facto benchmarking partnerships with competitors allows participating institutions to compare cost and output advantages and disadvantages, when performing key processes involved in lending operations. This paper presents an application of technique benchmarking to lending operations across Australia to highlight differences in costs involved in seemingly identical value chains.