Interest Rate Mortgages

Many home buyers took advantage of low intereste rates during the GFC. But now they are coming up for renewal and will find it tough to pay. Mark Bouris talks to Andrew Robertson at ABC’s Lateline Business

www.kw.com An Adjustable Rate Mortgage may offer a lower initial interest rate and monthly payments than a conventional fixed rate mortgage. After an initial term, the interest rate on an adjustable-rate mortgage loan is re-set periodically to keep the rate in line with current market interest rates. For example, a 3 ARM loan offers a fixed rate for the first three years. The interest rate adjusts once a year thereafter. 5/1, 7/1 or 10/1 ARM loans offer a fixed rate for the first five, seven or ten years respectively, adjusting yearly thereafter. The lender sets the adjustable interest rate by adding a fixed percentage to an index rate. When the interest rate goes up, your monthly payment also increases. Most ARM loans have a periodic rate cap and lifetime cap to limit the amount the interest rate can increase each adjustment period and over the term of the loan. If your start rate is less than the fully indexed rate your interest rate and monthly payment may increase significantly at the first adjustment — even if the Index does not change. And, your interest rate and monthly payment will increase even more if the Index rises. Discuss with your mortgage professional how an adjustable rate mortgage may be the solution to your financing needs. For more information, please contact a Citi Mortgage Consultant at 1-877-693-0217.

currency-collapse.com www.youtube.com Video illustrates how home prices will continue to fall in the coming years. I advise people to sit back and wait for prices to bottom out and then step back into the market. Gold & Silver are still the best investments right now and I believe that if you put your money in the metals that you will be able to grow your wealth considerably and then be able to purchase real estate and extreme discounts compared to current prices. Video uses hypothetical example of “John Smith” and how he is affected when interest rates rise just one percentage point. I strongly believe that interest rates will rise to much higher levels from their current rates and this will cause real estate prices to fall even more.

mortgage interest rate update for 01-10-2012

Joe Sheehan, aka Joe Closeit, explains how the failure of the Congressional Super Committee will effect mortgage interest rates.

Ryan notes that in spite of the institution of Operation Twist, interest rates have increased. Louis notes that the Fed can’t totally control interest rates. Louis notes that rates want to and need to go higher. Louis notes that the dollar should be a weaker currency, but the Swiss and Japanese central banks purchased dollars to weaken their own currencies. Louis notes that there is a false concept if there is inflation, employment will increase. Louis notes that in this weak environment, all that happens is that unemployed people pay more for goods and services. Louis notes that the government uses hedonics to supress the actual impact of inflation. Louis notes that long term financing is a gift at low rates. Ryan notes the difference between the federal fund rate and the mortgage backed securities market. Louis notes that the Fed’s pronouncement that they intend to keep interest rates low is sending a false signal to the market as people think that mortgage interest rates WILL remain low until early 2013. The Fed may purchase mortgage back securities. Ryan notes that Obama focused on health care in the first years of his administration and now is only focusing on the housing market. Louis notes that characterization is not entirely fair as the stimulus was passed prior to health care under the idea that the stimulus would solve the housing woes and unemployment. Louis notes that the government programs can not solve economic problems. Louis notes that all the government …

Are you considering refinancing your home mortgate to lower your interest rates and monthly payments? This could be a great financial decision and TransUnion wants to help guide you toward a successful refinance. Follow these refinancing tips for the best experience. For more information on your credit score, visit www.transunion.com

Mark Bouris talks to David Koch about Foxed versus Variable rates on Sunrise

Nawar Naji – Toronto Mortgage Broker: How quickly things have changed. In July, Bank of Canada was preparing Canadians for higher interest rates, now rates are decreasing!

Experts in FHA, VA: www.freemanteammortgage.com Video produced by Get Found Stay Found http Best (Mortgage Companies) FHA, VA Loans Broken Arrow, OK 918-906-9490 Deborah Freeman owner of Freeman Team Mortgage, Inc. would love to help 1st time home buyers, Veterans, and those who wish to…