Question

Universal Bank pays 7% interest, compounded annually, on time deposits. Regional Bank pays 6% interest, compounded quarterly. Based on effective interest rates, in which bank would you prefer to deposit your money?

Answer 1

Rate Assumptions: 500,000 Loan, 60% Loan-To-Value, Rate and Term Refinance, 740+ Credit Score, 180-month loan term, Rate Lock of 30 days. All closing costs are rounded to the nearest discount point. Request a quote to find out what you’re eligible for. We do not require a credit check for a written quote.