How Do You Know About An Interest Rate Swap?
With the fluctuating economy and varying trends within the financial sectors, interest rate swap has become the common form of adjustment many creditors and financial institutions use to meet the demands of the changing financial climate. But lender beware: You may be unknowingly losing hundreds of dollars each year due to an unnoticed interest rate swap. Read more to learn how to discover, prevent and do something about an interest rate swap on your line of credit. Know the terms of the agreement. Identify the applied interest rate and the terms set forth to determine how and when the original interest rate is swapped for a larger interest rate. (i.e. What can cause or trigger the interest rate to increase?) Once the determined triggers have been identified, request immediate verbal notification. By law, you must receive a written notice of the interest swap. See your statement for details. Know if you were assigned a generic fixed-to-floating interest rate at the start of the loan or
