WCGreen
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Mon Aug-01-11 04:21 PM
Original message |
The Treasury Yield Curve for the 10-yr Note is 2.77%.... |
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since mortgages are tied to this interest rate, the cost of buying a house or refinancing your loan will stay around the 4.5% rate for a 30 year mortgage...
This is the rate that most credit cards and consumer loans also tie their rates too.
This means a few things for us; the uncertainty that was pushing the rate up over the last few months has subsided and so rates will stay around this rate for a while longer. It also means that there is a real belief in the finance community that things are not getting better anytime soon.
Now rates might drop lower in the next few months, but 4.5 on a 30 year mortgage is a great deal. You can get low interest rates on cars, and you can also get these historic low rates for big tickets consumer products such as refrigerators, washers or freezers.
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The_Casual_Observer
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Mon Aug-01-11 04:24 PM
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1. Might as well keep money in a sock under the pillow. |
WCGreen
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Mon Aug-01-11 04:29 PM
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2. But if you can get a loan for 30 years fixed at that rate... |
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You will undoubtedly be paying back dollars that are worth less than they are now.
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The_Casual_Observer
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Mon Aug-01-11 04:58 PM
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10. A new twist for sure, borrow the money & put it in a sock. |
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Wonder if the hedge funds have caught on to this one yet.
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WCGreen
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Mon Aug-01-11 05:46 PM
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13. How did you get to there when I was talking about refinancing an existing loan... |
leveymg
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Mon Aug-01-11 04:31 PM
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3. You can buy a lot of things cheap on credit, today, if . . . "It was the best of times, it was . . . |
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of course interest rates are low, there's no demand inflation.
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WCGreen
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Mon Aug-01-11 04:34 PM
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5. If you are in the position to take advantage I would certainly do so... |
Major Hogwash
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Mon Aug-01-11 04:32 PM
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4. Housing payments won't be affected, the balance will be "absorbed" by the issung bank |
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that holds the mortgage. Banks hold so many mortgages now that they are bulldozing down houses rather than trying to sell them.
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WCGreen
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Mon Aug-01-11 04:35 PM
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If you refinance your house from 6.5% down to 4.5% and don't borrow |
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any more money, your payments will drop significantly.
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WCGreen
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Mon Aug-01-11 04:35 PM
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6. If you refinance your house from 6.5% down to 4.5% and don't borrow |
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any more money, your payments will drop significantly.
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Major Hogwash
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Mon Aug-01-11 04:51 PM
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9. You need to talk faster than that to convince me. |
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You're not going to convince me, but it's pretty funny watching you talk so fast.
I know what the interest rates are here, they're foreclosing on the guy down the street. He has until the 15th to vacate his house.
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WCGreen
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Mon Aug-01-11 05:44 PM
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12. Right now if you are paying say $632 a month on a 30 year 6.5% |
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Edited on Mon Aug-01-11 05:44 PM by WCGreen
interest rate mortgage and you refinance to a 30 year 4.5% mortgage, your monthly payment will go down by about $125 bucks a month...
I don't know how much more explaining you would need.
And even if you kept paying the same amount you are paying now, you could pay off your mortgage seven years early.
If I follow you correctly, I think you are talking about borrowing money on a house you already had just to have the money.
I'm not saying that at all.
All I am talking about is that Mortgage Rates are at historical lows and if you can take advantage of refinancing to a lower rate you will save money.
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n2doc
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Mon Aug-01-11 04:43 PM
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7. Great. IF you have a job. If you have the 30% to put down. |
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If you don't mind your new house investment dropping another 30% in the next couple of years...
Such a deal.....
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WCGreen
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Mon Aug-01-11 04:47 PM
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Nothing is good, I might as well eat worms...
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madrchsod
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Mon Aug-01-11 05:14 PM
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11. i have an adjustable...it`s down to 3.5% |
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the cap on the 5 year raise is 2%. thank whoever that they do`t sell their mortgages and they don`t foreclose.. just like a car loan they take your home for non payment. they do`t list homes as foreclosures.
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DU
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Sun May 05th 2024, 06:36 AM
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