Fed Reserve Rate Cut...
- Thread starter NCTURBOS
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I am waiting for the mortage rates to hit 4% then I am going to refi everything I got... Lock in!
What does it really mean IMO? It means the International Bankers are trying to prop up the economy as long as they can while they continue stealing what little wealth we have left... Right now they have stolen 8.5 TRILLION!
What does it really mean IMO? It means the International Bankers are trying to prop up the economy as long as they can while they continue stealing what little wealth we have left... Right now they have stolen 8.5 TRILLION!
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Keith all my friends from the local bankers think so... Not sure on the time frame but I am thinking by year end 09 at latest. They will have to lower it so people can pay the principals on the note's let alone the interest! Also the only way to sale some of these foreclosed on houses. Hoping investors may buy them to rent if nothing else if the rate is low enough...
You will have to have PERFECT credit to qualify. If you do they will be catering to customers like you as the economy continues to go down...
You will have to have PERFECT credit to qualify. If you do they will be catering to customers like you as the economy continues to go down...
Raymond Bunch
"Turbo Enthusiast"
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I just locked mine in yesterday for 5% for 30 day's. Is there anyway I can back out of this and wait a bit longer to see how much more it falls? I haven't signed any refi documents yet....
Or did my wife jump on the grenade just a bit to early
Or did my wife jump on the grenade just a bit to early
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Well 5% is not to bad... Are you sure it is locked. From what I have seen many banks are giving floating rates and hoping people sign:wink:
Raymond Bunch
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Yup. it's locked in already and has already been approved. It's also a VA loan.... But from my understanding, nothing is final until docs are signed etc.
Also, USAA dropped their best rate to 4.725 from 5% yesterday. Yhis is for the 30 year fixed...
Also, USAA dropped their best rate to 4.725 from 5% yesterday. Yhis is for the 30 year fixed...
John Larkin
Sublime Master of Turbology
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I refi'd @ 6.25% five years ago. Cost me $150 extra a month to go from 30 years to 15. Ten years to go. Yay us.
Black Power
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My dad's old college roommate is the president of a Wells Fargo. When my wife and I were shopping for mortgages I had a conversation with him about the fed rate cuts (this was when they were cutting it seemingly every month) and the story I got from him is that while the fed rate cut CAN mean a lower mortgage rate, it's not guaranteed. I don't have the terminology or appropriate knowledge to explain it, but basically the mortgage rate is determined (in the end) by the bank investors and bank higher ups. So while the fed rate may be dropping, this doesn't mean the bank will necessarily drop the mortgage rate simultaneously.
We finally got ours secured at a fixed 5% 15 year. I wish I had the flow to pay a weekly mortgage like Otto but I can't come close to that, but I think the payoff on our house now is only like 45k (we put down a nice down payment.)
Good luck and happy mortgage shopping.
We finally got ours secured at a fixed 5% 15 year. I wish I had the flow to pay a weekly mortgage like Otto but I can't come close to that, but I think the payoff on our house now is only like 45k (we put down a nice down payment.)
Good luck and happy mortgage shopping.
Black Power
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The answer to the huge text of your original post is that your money is not making crap sitting in the bank. Time to invest otherwise...my brain says look at some bargain stocks but my heart tells me that things will get worse before they get better with Obama coming into office in January.
GL
Im not paying a full mortgage payment every week,i don't make that kind of money. The bank offered a deal and its a bit more than 4 weeks divided but pays the principal quicker.
When I studied up on it.... the mortgage rates... at least from the institution I was reading about.... were tied to the t-bills.... or treasury notes.... like 1 year or something.... then add so many percent to whatever the current t-bill rate was...
I specifically remember that it is not directly tied to the fed's interest rate.....
FWIW... I am 5 years into a 20 year mortgage... at 5.375%..... I won't be able to re-finance until bottom 4's and see any real benefit....
I specifically remember that it is not directly tied to the fed's interest rate.....
FWIW... I am 5 years into a 20 year mortgage... at 5.375%..... I won't be able to re-finance until bottom 4's and see any real benefit....
The fed funds rate doesn't directly affect mortgage rates. It is the rate at which banks can borrow from the federal reserve - meant to make more immediate money available for consumers. They borrow cheap to lend cheap. The problem right now is default risk - the banks just don't want to deal with it and rightfully so, every type of credit has had skyrocketing default rates lately.
Money being cheap for a short while is good, but for a long while and it's risky because of inflationary effects over time.
Money being cheap for a short while is good, but for a long while and it's risky because of inflationary effects over time.
Black Power
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Sounds like a good deal. I need to start paying more towards my principal each month so I can get out from under mine.
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I have my on line payments set up to pay EXTRA principal on my mortgage every Friday as well. It doesn't take alot. I have even heard of people paying $10 bucks a DAY to offset the interest charged... Interest for a mortgage is PER DAY PER BALANCE. I might not do mortgages but I have been in the personal finance business with my mom since I was born, I know how to crunch the numbers...
Fed rates does not directly effect mortgage rates. It does indirectly influence them in many ways... People with a good portfolio can go and borrow the money at -prime on unsecured personal lines that will lock in at sub prime. So why not go that route and pay your home off? Many variables come into play. You have to wait for a few of these "bailed out" giants to start putting some of that money back into play. Once it frees up any cash big investors will borrow again
to put back into mortgages... So it will drive down the rate over time!
Fed rates does not directly effect mortgage rates. It does indirectly influence them in many ways... People with a good portfolio can go and borrow the money at -prime on unsecured personal lines that will lock in at sub prime. So why not go that route and pay your home off? Many variables come into play. You have to wait for a few of these "bailed out" giants to start putting some of that money back into play. Once it frees up any cash big investors will borrow again
to put back into mortgages... So it will drive down the rate over time!
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Some institutions will set up the every 2 weeks deduct. That gives you 13 payments a yr. Some do it for free, while others try to screw you into a fee to set it up, and maintain it.
The benchmark I get for the "good to go" for a refi, is 2% points lower than your current %.
One has to watch for the "hidden BS" costs..I've also been warned to not refi the refi charges.. You are then paying interest on that amt for 30 yrs. Pay it up ft, and move on.
Some "genius" in DC, made a recent comment that home mort rates could be <4% by summer. If/when that hits, there could be a buy up of foreclosed homes, and a goodly bit of refi activity. It WILL happen at my place, for sure!
The benchmark I get for the "good to go" for a refi, is 2% points lower than your current %.
One has to watch for the "hidden BS" costs..I've also been warned to not refi the refi charges.. You are then paying interest on that amt for 30 yrs. Pay it up ft, and move on.
Some "genius" in DC, made a recent comment that home mort rates could be <4% by summer. If/when that hits, there could be a buy up of foreclosed homes, and a goodly bit of refi activity. It WILL happen at my place, for sure!
