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The best home loan: how yields means less-preferable mortgage rates structures, margins and risk appetites.
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David Stockman: It's \Different to a tracker mortgage, the lender sets the variable interest rate you pay and has several choices when there's a change to the base rate. More about. The Fed sets the federal funds rate based on economic conditions, which affects financial institutions' borrowing costs. Lenders adjust mortgage rates depending on how risky they judge the loan to be. A riskier loan carries a higher interest rate.
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