Great Lakes 4x4. The largest offroad forum in the Midwest banner

1 - 15 of 15 Posts

·
Registered
Joined
·
1,105 Posts
http://mortgages.interest.com/mortgage/borrowers_fed_rate_cut_09172007.html

http://www.mortgage101.com/Rates/Index.asp?p=mtg101


these show that something is going to be annouced today, and that lately rates have been down, so I guess it is time to refinance for anyone who has been thinking about it.

Anyone have an good input on this stuff?
If the Feds lower the overnight banking rate or fed fund rate they will probably do it 25bpts if so you'll see the rate for your home equity line, credit cards, boat loans, car loans, etc. drop. It's not directly related to a 30yr fixed mortgage. They may lower the discount rate by 50bpts if so that means that the rate banks borrow money from other banks gets cheaper so ultimately that will help, in rate for mortgages but again not directly.
The 10yr yield is priced about 6months ahead, so it has these drops priced in. If the Feds lower rates here and again at the next meeting and it still doesn't get the economy moving you'll see rates drop again on fixed rate mortgages. In order for arms to drop below fixed rates you'll have to see fears of recession gone and the yeild curve come back to normal, right now the 3yr arm is about the same rate as a 30yr fixed.

If you have any questions about your personal mortgage everything in confidential. PM me
 

·
Motrcytman's spouse
Joined
·
7,208 Posts
We are paying 4.6% fixed. I doubt if they will be that low again for a awhile...
 

·
Registered
Joined
·
2,153 Posts
If the Feds lower the overnight banking rate or fed fund rate they will probably do it 25bpts if so you'll see the rate for your home equity line, credit cards, boat loans, car loans, etc. drop. It's not directly related to a 30yr fixed mortgage. They may lower the discount rate by 50bpts if so that means that the rate banks borrow money from other banks gets cheaper so ultimately that will help, in rate for mortgages but again not directly.
The 10yr yield is priced about 6months ahead, so it has these drops priced in. If the Feds lower rates here and again at the next meeting and it still doesn't get the economy moving you'll see rates drop again on fixed rate mortgages. In order for arms to drop below fixed rates you'll have to see fears of recession gone and the yeild curve come back to normal, right now the 3yr arm is about the same rate as a 30yr fixed.

If you have any questions about your personal mortgage everything in confidential. PM me
I have been going through a refinance recently. I just wanted to say Chris has been VERY helpful getting me through the BS involved with it.
 

·
Catch the wave
Joined
·
7,994 Posts
we're paying 5 1/8% 30 year fixed. yeah, it too was a couple of years ago.

my father inlaw's mortgage is at 4.375 30 year fixed. but then he also had over 2 million in various equity accounts with the bank that he financed with, and had the house paid off... wanted an interest deduction, as well as some liquidity a few years ago so he could buy their 2nd house in venice florida. seems that at that extreme end of the 'market' that certain borrowers have some flexibility that us 'normal' folks are unable to secure...

re: the refi one thing to consider, is that with the bloated housing market, as well as the number of properties that are currently "bank-owned" that even with a cut in the rates in theory to lessen credit 'tightness' that many homes will not appraise at what they need to for many of the folks that are "upside down" in order to refinance and get out from under their ARMs that are ballooning shortly....
 

·
The Green Machine
Joined
·
4,197 Posts
I'm paying 5.75% 30 year fixed, got it about 10 months ago.
 

·
Motrcytman's spouse
Joined
·
7,208 Posts
What was it, 3-4 yrs ago it would have to be a arm or 15yr fixed? or paid points?
Fixed. The only kind I'd have on a home mortgage. May have had points, but it wasn't much because I did the analysis at the time & we saved a few thousand. No escrow, so we pay taxes directly. We loved that deal!! :woot:
 
1 - 15 of 15 Posts
Top