This spread accounts for the increased risk associated with a mortgage vs. a bond. So a 10-yr bond yield of 4.00% plus the 170 basis points would put mortgage rates around 5.70%. Of course, this spread can and will vary over time, and is really just a quick way to ballpark mortgage interest rates.
If you bring an advisor, say, $100,000 of your savings and the advisor charges a 1.0% fee, you'll pay the advisor $1,000 a year. According to Forbes, these fees run from 0.75% to 1.5% of your account annually, though 2% is not uncommon.
This obviously varies enormously. But the U.S. government has generally been thought to pay the ârisk-freeâ rate: 0 percent for risk. The rest of the interest rate is inflation. If money is losing value and you lend it, youâre going to expect to be reimbursed for the loss. Say you and I both expect an inflation rate of 10 percent next year, Denny. I ask to borrow a thousand dollars from you.