Your Questions About Mortgage Rates Trends

Donna asks…

30 years Mortgage interest rate prediction?

Looking for an expert in the market that thinks where the 30 yrs. mortage rate trend is for the next few months. I’m looking to lock a rate for refinance but don’t know what the rates trends will be a month from now.

thanks

admin answers:

My self i think it has bottomed out and will start a climb!!!

Richard asks…

In Jan. 30 year fixed mortgage rates were at 5.3%. Bernake has been cutting rates and now they’re at 6.1% why

http://bankrate.com/brm/graphs/graph_trend.asp?product=1&prodtype=M

admin answers:

The rates that Bernake cuts are the discount rates to the banks. The rates you refer to are the rates the banks offer to the consumer.

Bernake needs to get on the banks a litttle harder, to see that they are passing on these savings to the consumer instead of pocketing the differences.

This is yet another example of corporate greed!

Linda asks…

should i agree for a 20 year mortgage at a fixed interest rate?

should i agree for a 20 year mortgage at a fixed interest rate or should i agree to an interest rate that fluctuates and is based on the performance of the economy. i know the benefits and disadvantages of both, bit i do not have access to historical trends to make an intelligent decision. can any financial or loan officers out there assist?

admin answers:

Fixed, fixed, fixed. Go with fixed all the way! If there is a lower rate in the future you can refinance.

Lizzie asks…

Has the mortgage company rejected your payment & now your payment is late?

Scenario; Mortgage payment paid on time.
Bank notifies you that the payment was sent back.
You call the bank and they say there was an increase in your monthly paument.
You were never informed of the increase.
You send payment back with increase but now payment is late. Mortgage company charges late fee then reports you 30 days late to credit agencies.
This lowers your credit score and makes you a bit of a risk for lending. Report this malicious predatory activity to the Federal Trade Commission as well as your State Attorney Generals office. Possibly a new trend for mortgage companies to place you in a high risk category. High risk means high interest rates, high mortgage payments and more money for the mortgage company.

admin answers:

What is the question? THis is a statement.

Michael asks…

Mortgage problems – all Browns fault?

I understand that G Brown was always very keen on fixed rate mortgages, and put a lot of effort into promoting them.

In the past people had standard variable rate mortgages with a lender and would probably never move their mortgage unless they moved house.

Now the trend for G Browns ‘fixed rate’ mortgages (but only fixed for a few years, with un-economic rates at the end of the fixed period) means that millions of people have to re-mortgage every few years, to pick up on the next deal.

And it is this remortgaging that seems a complete gamble — noone can know what the financial circumstances will be when the remortgage is required – if it comes when a Credit Crunch hits, then you are stuffed, cos noone is going to give you a new mortgage

Isn’t this the root of the problems that are just about to hit?
http://news.bbc.co.uk/1/hi/business/6292266.stm
Maybe I should say – I have done well out of property and have no mortgage problems – but I hate the unpredictability that G Brown has generated (end of ‘boom and bust’ – ha ha ha)

admin answers:

Brown was keen on long term (25 years) fixed mortgages that give a relatively smooth payment profile and allows for people to plan what they have to find each year. The recent trend to catch people with low fixed rates that revert to higher variable rates after a short period (2 or 3 years) is a credit industry invention and only deliverable if they can also borrow money cheaply from each other. The short period works well for banks as it means they can get rid of you after a couple of years if your not a great customer or they rely on you to be lazy and just carry on with their higher variable rate.

As for the gamble, you have to plan for higher interest rates if you have a short term fixed, so should be able to pay more. If not, then you have a real problem. It should be said that there are plenty of good mortgages out there but you have to be squeaky clean now to get them as lenders are not taking risks at the present.

The real problem is that banks are happy to lend you an umbrella when it’s sunny but as soon as it starts raining they take it away. The same banks who made billions from us getting credit are desperate to pull the rug now it’s got a little tough. Although RBS progressing a rights issue looks like good news.

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