 Why would a 30 yr mortgage loan at a fixed interest rate of 6.25 go up $250 in a month? |
Additional Details
I checked my papers and it is a 30 yr fixed rate loan and when I called them the said it raised because of my taxes. Yes I am escrowing the taxes. I still feel like ... |
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 No Money down Mortgage? |
| I have sketchy credit score, but the house I am looking at is about 160,000, and I make about 55000 per year. will i be able to get a no money down loan, or will i need a co-borrower with good ... |
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 My mortgage company wont help me? |
| I fell behind in my mortgage payments and am now facing forclosure. I was advised to contact my mortgage company, they are required to work with me under some new laws. They are continuing with ... |
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 What am I supposed to do about my landlord? Real help only please no crap.? |
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 Do we both need to get renter's insurance? |
| My friend and I are moving into an apartment together. I just wanted to know if we both need to get separate renter's insurance policies, or if one of us can get it and the other's ... |
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 I am buying my first home. This home is a bank foreclosed home.? |
| I'm buying it for 153,000.00. On 7/7/06 it sold for 303,000.00. The house is in excellent shape and it is fairly new. It was built in 2000. Does this mean I'm getting a deal?... |
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 To landlords: do you enjoy screwing people? |
| I find that a lot of you are scummy, bottom-dwellings monsters, liars, cheats, robbers, and just the **** of the earth.... |
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 Should i live in a hotel? |
i think it wold be cool to live in a hotel.
something like in the movie eloise in the plaza
some people were living in the hotel.
i love staying in hotels because it gives the nice ... |
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 Does my landlord have the right to forbid the installation of a/c units?however i pay my own electric bills.? |
| the contract doesnt display any restrictions to air conditioner. but it includes "no damage" in his house property. would installing hose be destroying his property?... |
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 Zillow.com home estimation is it accurate? |
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 What to do with my council flat? |
| I have a council flat. But i want to live with other students while at university and possibly do a placement abroad for a few months if i can. I feel tied to it and you arnt allowed to sub let even ... |
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 Is real estate a good career to get in for a 20 year old?? |
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| When doing a for sale by owner what percentage should a realtor receive...? |
if they bring you a perspective buyer? What are the pros and cons of working with realtors who bring you buyers?
Additional Details
I am experienced with home selling, for my situation a ... |
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 How do you legally evict someone from a property when there is no rental agreement and they don't pay rent? |
| We are in Tennessee. When my husband and his exwife got divorced he moved in to another house. The house they were living in together belongs to his grandfather but is on my husbands property. When ... |
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 Can I legally put someone out of my house if they've been staying with me? |
| I allowed a loser to move in with me because they needed a place to stay. It was not for free, he agreed to help me with bills and rent. However, he quit his job, and is now expecting me to take care ... |
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 I'm hearing that people in Florida.....? |
| are pretty much giving their houses away. Houses are sitting on the market and they are not moving. I am hearing all over that you are stupid not to go down there and buy a house. Where is the ... |
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Meadowlark | What will mortgage rates do in a slowing economy? |
I am right on the cusp of where it would make sense to refinance my mortgage. I already have a fixed 30 year at about 6 percent. If rates continue their decline it might make some sense to refi this baby and save around $100 per month or more.
I guess I have two questions that relate to the mortgage market.
How will a recession or even a slowing economy effect the mortgage rates?
How does a reduction in the fed funds rate effect mortgage rates? I understand that mortgage rates follow more closely the 10 year treasury rate. |
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Timmay
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wow a fixed rate a 6% is amazing btw. you should wait to refinance until the economy gets even worse, the interest rates go down. the Fed will keep cutting them as we head further into this inevitable recession in order to stimulate buyers to buy more homes. |
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MLaw
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We are in unknown territory. Economic activity is slowing but the dollar is nosediving which will lead to higher prices -- ie., inflation. Declining economic activity & rising prices is the dreaded "stagflation" wherein interest rates stay high even while business declines. Right now interest rates are held down by massive infusions of cash from these oil & trade wealthy countries' direct investments in our big banks. But it's only gonna take the prospect of an election for Congress to put a stop to this "foreign invasion." Moreover, The administration's & Congress' solution to the economic slowdown is a free cash infusion for the middle class. A classic inflationary maneuver. So I wouldn't bet the farm on interest rates declining in the long term.
But then again, if I'm so smart why ain't I rich? |
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Anthony W
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They will be cut further to try and stimulate the housing economy.
It's like a slow chirstmas! |
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Stephen_Speculist
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It's complicated. The risk of default is higher in a slowing economy and this would tend to make rates go up for most borrowers. But, the Fed tends to lower the prime rate in tough times in order to stimulate the economy.
How this will shake out and which direction the mortgage rate will go at this point is anybody's guess.
The prime rate is what the banks charge the lowest risk borrowers - those who almost certainly will not default. But, the prime rate is built into everybody's loans. Most people pay prime plus something. That's why when the Fed's drop the prime, mortgage rates decrease across the board. |
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tonytbag
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Being that our economy is undoubtedly heading into a recession, this sluggish economy will lead to lower interest rates for a few reasons. Assuming you are NOT a sub prime borrower, you will be able to refinance below 6 % easy. The average right now is aroung 5.5. So in these economic times, banks are in a 'liquidity trap'. The Fed will continue to ease on the fed funds rate and discount rate which means for you: banks will start borrowing again from each other and/or the fed. This will then allow them to turn those rates on to you ( prime borrower). |
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Mitchell J
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In a recession the Federal Reserve responds by lowering the key interest rate which makes it less costly for financial institutions to borrow money.
The Federal Reserve does this because those finacial institutions pass along the interest rate reductions in their mortgage offers sooooo the mortgage rate goes down.
There is an imbalance in the housing market that has made it very difficult to get a mortgage. While there are many who want to take advantage of lowering housing prices, the supply of financing (loans) is very lean at the moment so this may keep the interest rates up somewhat.
If you have verifiable income and a good FICA score then you will do well to wait an additional 6 months to a year to refinance. |
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LeAndra
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I agree with Steven. Usually recession would make rates go up, but with the Fed constantly cutting rates, who knows what will happen. |
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Pha
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They will definitly go UP!!!! |
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adp_14
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I think they will stay low and maybe even go lower int he short term, but long term, no one can know. There is pressure from both directions, as well as a ton of uncertainty in the mortgage industry. Fannie and Freddie (the comoanies that buy and package the best rate loans) are both in lousy financial shape.
Guidelines are getting tighter on mortgages. I don't know if anyone can give you a definitive answer on what rates will do. And I'm in the industry and watch it every day.
Best guess is: Short term, they will go lower. beyond 3 months from now, who the hell knows? |
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Bill Nye
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Go up DUHH!!!!!!! |
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