Mortgage rates will now drop alot...?

Question

I am excited about the Govt's recent activity to save my home fron recession....It would be easy to be the Fed chairman job..all you have to do is move rates lower when the economy looks flat lined and raise them while everything is going great. Anyway, now that the Govt has dropped the interest rate by a half percent, how long will it take until it gets easy again to refinance and lower the mortgage payment? I think the good days are back and homes should start building equity again. it should also be easy to get credit cards now that homes will shoot back up. Can I get some equity money at cheap rates going forward? After all, if the banks get loans for less cost, then we can expect this rate cut automatically...I can't wait, I want to shop til I drop and will put the goods on my CCard so I can pay later., I love free/cheap money!...lots of deals still out there.

Answer 1

You will see a very little down adjustment only if you have a debt that is tie to prime rate like ARM, HELOC and CC rates. Anything that is not tie to prime rate will have no impact from this rate reduction.

Answer 2

Well fortunately I know you are not serious and just saying that to get attention and see how many people respond.

What I wanted to comment on was the actual notion that the Fed rate cut will affect mortgage rates, in most cases it will not! long term rates like 30 year fixed rates are linked to bond rates not the prime rate. ARM's will possibly drop slightly but don't hold your breath waiting for that. If you want to refinance, do it because rates are low, just know that them being low has nothing what-so-ever to do with the Fed rate cut.

Answer 3

You sound just like some people I know. The good times are over!! You can't buy goodies with your equity, have the biggest SUV on the block, wear designer clothes or live in a 3800 sq ft house on a WalMart salary any longer folks!!! See you at Kmart.

Answer 4

that is not any longer likely that fees will bypass down any added than they're now, considering they're, and have been at an all time low for virtually 4 years. whether, it is likewise no longer likely that fees will bypass up with the housing marketplace being readjusting itself. perfect now, with appropriate credit, you may get a 30 3 hundred and sixty 5 days fixed at 6.00 with out paying any factors. you will pay some variety of broking service value, yet, no factors. as quickly as, the marketplace straightens out in approximately 2 years, seem for fees to bypass back up.

Answer 5

oh my god are you serrious? or are you trying to get us to fall for your scam? the lower the rates go the more likely your house is worth less. sure get an equity loan and when your payment jumps and you don't know why then you will see taht you have two interst rates one that is fixed and what that varies and in six months after you spent your money guess what your house won't even appraise for what your equity loan was for. yeh what bank do you work forCHASE? lets see you comments about loaning the 103 year old man 10,000.00 and using his 500,000.00 house for collateral and when he croakes in 6 months and his kids get nothing and the bank gets his house for 10,000.00 and sells it for 500,000.00 and keeps the profit we will call that "THE REVERSE MORTGAGE" RIGHT?

Answer 6

Will interest rates drop? Yes. Alot? No.

But don't worry - you're plan will work in any market, whether depression, recession, growth, whatever - you'll end up in foreclosure any way you look at it.

Sorry to hear that nobody told you about how to handle money.... "Aarrgh! A real shame, that!" (don't forget, it's still 'Talk like a pirate day')

Answer 7

hahaha good luck, bad market here to stay for awhile banks have tightened credit standards

Answer 8

Funny! I just hope others see your question as the joke that it is.