Significance of Debt to Equity Ratio

What is debt to equity ratio? Before I start discussing about the meaning and significance of debt to equity ratio, the best place to start is to define financial ratio. The reason is that, without having a basic knowledge of financial ratios, you may find it difficult to understand what the debt to equity ratio is all about. What is financial ratio? Financial ratios are the tools used in establishing relationship between a company’s financial information for the purpose of comparison. Financial ratios can be used to compare a company’s past performance or with the performance of other companies within Continue ReadingSignificance of Debt to Equity Ratio

Student Loans: What is a Direct Stafford Loan?

Direct Stafford Loan is one of the common student loans available to undergraduate and graduates students in U.S.  Direct Stafford Loan is a federal student loan and it is guaranteed by the U.S government.  Direct Stafford Loans can also be referred to as Direct Loans. The interest rates on the loans are usually fixed and are lower than that of private loans. So, if you are a graduate or undergraduate student seeking for student loans, Direct Stafford Loan can actually be a good option for you as this will help you save some cost on interest payments. Not just because Continue ReadingStudent Loans: What is a Direct Stafford Loan?

Reverse Mortgage: What is a reverse mortgage?

A reverse mortgage is a special type of home equity loan that is available to senior citizens of 62 year and above. Unlike the conventional mortgage loans where you are given a loan upfront and you start and continue to pay monthly instalments over the loan period, the reverse is in the case for reverse mortgage. In the case of reverse mortgage, you don’t need to pay b the home. Instead of you paying back the loan, it is your lender that pays you based on your payment option while the interest accrues on the loan. However, reverse mortgage is Continue ReadingReverse Mortgage: What is a reverse mortgage?