Interest rates, ARM's and home equity loans

Discussion in 'Budget Board' started by Chicago526, Apr 20, 2006.

  1. Chicago526

    Chicago526 <font color=red>Any dream will do...<br><font colo

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    I found some interesting stats in an ABCNews.com article I was reading about the Fed not raising the interest rates much more. Thought I'd pass it along!

    http://abcnews.go.com/Business/story?id=1862426&page=1

    I am sooooo glad we got a 4.75% rate on a 30 year fixed last fall! I can't imagine people with 1, 3, or 5 year arms are going to do when lock period ends and their rates jump! I think there are going to be a lot of forclosures and/or people trying to sell their homes before the bank takes it in the next few years!
     
  2. dvcgirl

    dvcgirl DIS Veteran

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    4.75% on a 30 is a killer rate! As for rate hikes, keep an eye on inflation. The Fed may be forced to hike the key rate if inflation looks to be heading up....and the price of gas is sure going to force inflation up in the short term...

    This will surely be painful for folks who have been living on CCs, or have ARMs that are adjusting or about to adjust. It will be downright ugly for some homeowners, and really bad for investors who used risky ARMs and must now sell their properties at a loss....
     
  3. Chicago526

    Chicago526 <font color=red>Any dream will do...<br><font colo

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    Yeah, I was happy with that rate, myself! Only had to pay something like an 1/8 of a point (worked out to $148 or something like that). I couldn't sign the paperwork fast enough! :)

    I too feel bad for those that live on CC's, especially those that don't have a choice (job layoff, medical crisis).

    The article said that the Fed is going to wait and see how their past hikes are doing before they'll raise it again, so there could be a good six month or longer break in rate changes.
     

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