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Poorer credit scorers could get a higher interest rate, up to 22.
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When the exchange rate has changed, the trader buys the first currency again; this time he gets more of it, and pays back the loan.
One may also take a short position in a currency using futures or options; the preceding method is used to bet on the spot price, which is more directly analogous to selling a stock short.
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The Bureau likewise proposes not to cover loans that have a term of longer than 45 days if they are not secured by a leveraged payment mechanism or vehicle security, or loans that have a total cost of credit below a rate of 36 percent per annum.
Conforming ARM Loans – APR calculation assumes a $150,000 loan with a 20% down payment and borrower-paid finance charges of 0.
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