What is a blended rate?
The blended rate is the sum of all interest payments on two mortgages over a specified period, divided by the sum of all the balances of the two mortgages over the same period. If the terms of the two mortgages are the same, the blended rate will be the same as the weighted average rate. If the second mortgage carrying the higher rate has a shorter term, however, which is common, the blended rate will be a little lower because the higher rate loan is paid down faster.
The blended rate is a simplified approach to deliver dual carrier quotes to employers. The proposal consists of a single set of rates with a contribution strategy. Benu will guarantee the rates if the employer implements the recommended contribution strategy. What are the advantages for brokers and employers? • Simple to understand • Easy for employers to compare the total premium across each option • Employers can easily implement a contribution strategy to reduce premiums by 2-6% How do I request a blended rate proposal? For more information about the blended rate, contact your health plan sales representative.
A blended rate is an interest rate that is created when a loan is refinanced at a different rate than was applied to the original loan. What makes the blended rate unique is that the original rate of interest still applies to the amount of the loan that is outstanding at the time of refinancing. The new rate of interest is applied to any additional funding that is extended to the borrower as a result of the refinancing of the loan. Generally, the rate of interest extended on the additional funds is granted at a rate that is less that the current market standard. Debtors who need to engage in refinancing can benefit from earning a blended rate rather than attempting to roll an old loan into a new one. Often, a combination of the previous rate and the new loan rate will result in a lower rate of interest than what can be realized by obtaining a loan that would pay off the existing loan and still provide the additional funds required. It is not unusual for lenders to be quite willing to e
