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Interest rates are climbing
Posted by: decocritter
Date: December 14, 2005 02:42PM
chase and att credit cards went up twice in one month. How do you negotiate a fixed rate.

I have an account at Washington Mutual. Will they give you a low fixed rate?
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Re: Interest rates are climbing
Posted by: Jimmypoo
Date: December 14, 2005 03:56PM
>>I have an account at Washington Mutual. Will they give you a low fixed rate?


Definitely.

If you have deposits over $500k in their private banking division, the interest rate is only 4.9%.
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Re: Interest rates are climbing
Posted by: kap
Date: December 14, 2005 04:02PM
Do you have a home loan with WaMu?

Kap



SoCal for now.
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Re: Interest rates are climbing
Posted by: Phy
Date: December 14, 2005 04:18PM
i do-- fixed rate of 5 .025
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Re: Interest rates are climbing
Posted by: kap
Date: December 14, 2005 05:50PM
Man, that is a GOOD rate. We can't afford a fixed rate at this time. So we have a 5 year ARM.

Phy Wrote:
-------------------------------------------------------
> i do-- fixed rate of 5 .025






SoCal for now.
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Re: Interest rates are climbing
Posted by: WHiiP
Date: December 14, 2005 07:25PM
IF you are eligible get a USAA Master Card . . . they are one sweet company, especially as far as corporations go. Just Awesome!!!

grinning smiley




Bill
Flagler Beach, FL 32136

Carpe Vino!

Fermentation may have been a greater discovery than fire.
— David Rains Wallace
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Re: Interest rates are climbing
Posted by: Mactel
Date: December 14, 2005 09:12PM
Hey Kap, what rate did you get on your 5 year ARM? When is the 5 years up?
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Re: Interest rates are climbing
Posted by: kap
Date: December 14, 2005 10:46PM
Mactel,
It's 6.4. Just to think we had 5.4 fixed rate 3 years ago when we owned our townhome in Pasadena, CA.
The five years will be up in 2010.

Kap




SoCal for now.
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Re: Interest rates are climbing
Posted by: kap
Date: December 14, 2005 11:47PM
FYI ...

Risky mortgages could be harder to get
By Kathy Chu, USA TODAYWed Dec 14, 6:35 AM ET
Qualifying for a low-payment, high-risk mortgage is getting harder.

Federal regulators plan to issue a notice this month that could make lenders more hesitant to offer "non-traditional" mortgages - such as interest-only loans and option adjustable-rate mortgages - to people with weak credit or finances.

In the third quarter, 33% of first mortgages approved by lenders were non-traditional loans, compared with 1% five years ago, according to LoanPerformance, a research firm.

Interest-only and option ARMs are fairly complex mortgages. Typically, borrowers make artificially low payments for a period, such as five years. Afterward, payments shoot up to reflect current interest rates and the principal owed. Regulators worry that some borrowers lured by these mortgages' initial low payments won't be able to handle higher payments later. Lenders would then be at risk for loan defaults.

Interest-only loans and option ARMs have likely contributed to the surging housing market, because they let borrowers buy more expensive homes than they normally could afford. Non-traditional mortgages have become more widely available as companies have rushed to meet demand. Quicken Loans, for example, began offering option ARMs this year and interest-only loans two years ago.

If non-traditional mortgages become scarcer or if borrowers turn away, "That could have a cooling effect" on the housing market, says Glenn Costello, a managing director of Fitch Ratings.

Borrowers who use such loans would see their mortgage balances rise over time if their monthly payments don't cover the loan's interest, Federal Reserve Governor Susan Bies has warned. And lenders risk higher defaults if they ease up on safeguards, such as verifying borrowers' income, Bies says.

Regulators plan to formally weigh in on the risks of these mortgages by year's end. The notice will address how banks qualify borrowers for loans, the lenders' portfolio risk and the "payment shock" borrowers could face as their payments rise, says Barbara Grunkemeyer of the Office of the Comptroller of the Currency.

The likely result? This will "pressure lenders to tighten standards," says Keith Gumbinger of HSH Associates, a publisher of loan information. "That may mean that somewhat fewer borrowers qualify."

Some mortgage lenders aren't waiting to take action. New Century Financial says it's cutting back on interest-only loans because they were "highly concentrated in the (company's)portfolio" during some quarters. Washington Mutual and Golden West Financial have raised the introductory interest rates on option ARMs in recent months.





SoCal for now.
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