
Home loan and mortgage exit fees when buying...
When you purchase a home, you pay a mortgage to a lender. What you may not know is that home loans often come with other fees attached. Some fees may be payable in advance. You may have to pay...
A basis point or BP is a unit of measure used to describe the percentage change in financial instruments such as interest rates.
A basis point or BP is a unit of measure used to describe the percentage change in financial instruments such as interest rates. One basis point is equal to one-hundredth of a percentage point or 0.01%.
Basis points are used instead of percentages in certain contexts for precision and convenience, especially when dealing with small changes in interest rate. While a percentage is based on a scale of 100, a basis point is a smaller unit, representing one-hundredth of a percentage point. Using basis points allows you to express and communicate changes in a more granular yet straightforward manner.
An increase of 10 basis points in interest rates equates to an increase of 0.1%. This is done by multiplying 0.01% (one basis point) by 10.
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