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Looks Like the Feds are going to raise rates 1/4 point

Discussion in 'The Lounge' started by CPTN.CROWN, Sep 21, 2004.

  1. Not sure if any of you follow or keep up with this. Today the feds are meeting once again to raise rates .25%. This will be the 3rd increase in as many months. What most people dont understand is that this doesent really affect the mortgage market. Both times they have raised rates mortgage rates have decreased. The media tends to blow things out of proportion on this issue. Just thought id share a little bit of my industry with those who are unclear on what this actually means, and the impact it has. If you havent refinanced in the past 3 years i would highly recomend that you contact someone to see if there is a program that would save you money. Example your initial mortgage balance was 100,000k and a rate of 7% a payment of 655. By simply refinancing to 6% your payment is 55.00 less per month. Doesent sound like much by multiply that times 30 years and you save 25,000.00

    For those of you that have refinanced and are on a lower rate. If you have more than 10k in revolving dept, ie credit cards you should look into a consolidation loan. This in return will save you drastic amounts of money based on how long it would take you to actually pay off that debt. Even putting more towards you cc bill it doesent have the impact on applying more towards your principal balance of a mortgage. If your minimum payment is 80. and you send 120 really only about 45 dollars is going towards your balance. Roll that debt into your mortgage and put that extra money towards your 30 year loan and you can take almost 8 years of a 30 year loan.

    Im not trying to obtain business from OGF. Just simply getting this information out to fellow members who might benifit from this.

    Have a Great Day Everyone ;)
     
  2. Thanks for the info Cap'n, My GirlFriend is a BBO, it's always nice to be able to carry on a halfway intelligent conversation with her about her work.
     

  3. Im sorry, what does your girlfriend do?
     
  4. Well I can't tell you EVERYTHING!!!!....they'll kick me off the site :D :D

    She's a Business Banking Officer
     
  5. Ruminator

    Ruminator TeamOGF

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    For anyone who has a 401K plan, you can use it to be your own banker/lender!!
    This is a TOTALLY sweet deal and you the borrower have a WIN/WIN situation.
    I know, because I just refinanced my credit cards debt and car loan this way.

    You can borrow up to 1/2 of your 401K plan value. The interest rate will be slightly higher than some other loans(still comparable to credit unions), BUT- every penny of ALL the interest you pay goes to YOU, not the bank!! It ALL goes back into your own 401K account. You are your own lender. :) Gotta love that.
    Now that is a super sweet deal!!

    If you have a 401K plan, check into it.
     
  6. Lundy

    Lundy Staff Member

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    Froggy,

    Just what would make you think we watch you that closely? :D :D :D
     
  7. DaleM

    DaleM Original OGF Staff Member

    :D What? us watch anyone on here? ;)
     
  8. Lewis

    Lewis ORIGINAL TEAM OGF

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    Nah...we never keep a close eye on Froggy..regardless of what his girlfriend does,or how his signature reads. ;)
     
  9. :D :D :D Thanks guys...for NOT paying attention to me...you wouldn't believe some of the stuff I do here. You Guys are too much, almost makes a guy feel like he's at home :eek:
     
  10. Fish4Fun

    Fish4Fun Relaxing.

    I refinanced for the better rate this yr. I dropped almost 2% from 7.85 to 6%.
    Capt your right you will save but also take a look at what youll save in interest over 30yrs with that % or 2 drop. I just wish i would have done it sooner and i could have gotten down to 5 or 5.5
     
  11. Fish4Fun

    Fish4Fun Relaxing.

    Capt whats your take on all these loans people are getting today were they only pay the interest. You know the ones that allow people to get into a big fancy $300k home for the payment of $100k home. To risky for my blood.