Your Questions About Mortgage Rates News

Jenny asks…

What’s the point of the emergency rate cut by the BOE shouldn’t rates be increased instead?

http://news.bbc.co.uk/2/hi/business/7683661.stm

right lets get away from the election for a while, interest rate cuts make our currency and investment likelihood less enjoyable by investors, why cut rates as not all the value is past onto mortgage holders? Views tvm.

admin answers:

It is in effect an increase.

That’s because of the very nature of cutting the rates, then the banks wait months to pass the benefits on, they’ll not immediately cut peoples interest charges.

Another scam has been with public transport. In my region, the main public transport company; first, raised their prices five times in a year at the height of high fuel costs. They said they’d done this to cover short falls in previous years. However, there were no shortfalls – they simply omitted to mention to the public that they had done a deal and had the prices pegged to a certain level which still has another year to run. And now despite falling fuel prices, the journey costs aren’t falling at all.

Sometimes I think that the only thing that government and big business would cut is our throats.

Sandra asks…

So, a bill to lower interest rates was killed by democrats?

what are your thought on the news article below?
It’s all about social programs-this would of helped the housing market pick up, and if the housing market goes up so does everything else.

WASHINGTON – A plan by Republicans in the Senate aimed at pushing mortgage rates lower has gone down to defeat at the hands of Democrats.

The plan by Nevada Republican John Ensign would have encouraged banks to issue mortgages with interest rates of 4 to 4.5 percent. The government-controlled mortgage giants Fannie Mae and Freddie Mac would have bought the mortgages on the secondary market. Jumbo loans would have been ineligible.

Democrats killed the idea Thursday night by a 62-35 vote.

The plan also contained an assortment of expensive tax cuts such as cutting the bottom 10 percent income tax rate in half for two years.

admin answers:

Have you tried to get a mortgage lately?

My closing is now 2 weeks overdue and the bank doesn’t want to lend because the interest rates are too low as is.

Banks make money by charging interest. When rates are pushed too low by govt. Regulation, they will stop lending.

Michael asks…

How much has your mortgage gone done since the recent interest rate cuts?

Mine has gone down by £277 a month but I am overpaying while I can to make the most of it. First bit of good news this year!

Thankss Minki

I am not usually that sensible! But it feels really good to be doing something useful with the money! Does making overpayments make a significant difference to your mortgage balance?
Oops!!! I meant gone DOWN!

admin answers:

Well done for making the overpayments and not just keeping the cash. X

Unfortunately, I’m on a fixed rate!

(I work in the mortgage business and I didn’t see that coming! Bums!)

Laura asks…

where i can find today’s wholesale market rate for fixed mortgage (2years)?

where i can find today’s wholesale market rate for fixed mortgage (2years)?
as i want to exit a fixed mortgage with ANZ, and they could not locate today’s wholesale market rate and told me to look in the news papers. is it available online?

admin answers:

Your bank is an idiot. They should be able to advise you of what break costs would be applicable if you paid out your loan. The pay out amount would only be valid for the day of your enquiry but would be a good indication of what the final amount would be. The amount will change each day but not usually significantly. Tell them you want to pay out your loan and request the amount due.

It is irresponsible of them to suggest that you locate the wholesale market rate. Get back to them and tell them to provide you with the service for which you are paying them.

It is not up to you to do their work for them

Ruth asks…

Should I lock in my interest rate now or wait?

We are buying a house and our mortgage company wants us to lock in our rate now at 5 1/2% with no points. We heard on the news interest rates should be dropping soon so should we wait?

admin answers:

That news they are releasing probably won’t affect your mortgage rates…… Your car loans, credit cards, equity lines. Things of that nature mostly.
Not your long term mortgage rates.

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