Consolidating unit investment trust

08-Feb-2020 05:55

The two main types are stock (equity) trusts and bond (fixed-income) trusts.Unlike a mutual fund, a UIT is created for a specific length of time and is a fixed portfolio, meaning that the UIT’s securities will not be sold or new ones bought, except in certain limited situations (for instance, when a company is filing for bankruptcy or the sale is required due to a merger).Stock trusts are generally designed to provide capital appreciation and/or dividend income.They usually issue as many units (shares) as necessary for a set period of time before their primary offering period closes.Like mutual funds, UITs issue redeemable shares (called “units”).Like closed-end funds, however, UITs typically issue only a specific, fixed number of shares.A mortgage holder may take out a consolidated mortgage to lower monthly payments or for some other reason.See also: Blanket mortgage, Debt consolidation, Consolidated mortgage bond.

* Securities offered through IBA Securities, a division of Broker Dealer Financial Services Corp., member NASD/SIPC.At year-end 2008, UITs held .54 billion in assets.Today there are more options than ever to help you!Credit cards and unsecured personal loans usually have higher interest rates than other forms of secured debt like a mortgage, home equity loan or an auto loan.If you find that your rate on a home equity line of credit is less than the rates on credit cards, other personal loans or auto loans, utilizing borrowing through that line of credit may save you money.

* Securities offered through IBA Securities, a division of Broker Dealer Financial Services Corp., member NASD/SIPC.

At year-end 2008, UITs held .54 billion in assets.

Today there are more options than ever to help you!

Credit cards and unsecured personal loans usually have higher interest rates than other forms of secured debt like a mortgage, home equity loan or an auto loan.

If you find that your rate on a home equity line of credit is less than the rates on credit cards, other personal loans or auto loans, utilizing borrowing through that line of credit may save you money.

While that may sound appealing, especially if the new loan offers an attractive initial interest rate, it is important to consider all the factors associated with debt consolidation.