Is it possible for mortgage rates to walk down to 3%? I enjoy a simple argument. Agree?
Historically, home prices are super high compared to the average earnings even though the huge drop have already happened. People are angry that they are losing equity, are underwater on their loans, and some just amble away from their loan because they are paying a lot more than their worth. So I don't see TARP or anything like that helping or protecting people's home equity.
I bought a SUV final year and the deal was any $5,000 off (and have 10% financing) or no rebate and grant 2.99% interest rate. To me, those who took the 2.99% deal paid $5000 more for one and the same SUV. For the dealership though, they were able to market it for more than what others thought it might be worth.
I think housing prices still need to jump down a lot more. I am wondering if the government can present incentives or interest free loans to banks so that they can offer super low rates surrounded by the 3% range to get ancestors to buy at these higher prices. Then the economy awakens again. Yes near will still be foreclosures but then a turnaround will be coming quicker.
I have talk to realtors over the past few years and it is always matching. "There is no way rates will go lower than very soon.
So is my idea correct or is there pretty much no agency we can have 3% mortgages. If not 3%, how far down can they go?
Answers:
First your right about the SUV. Housing rates will never jump below 4.99%, possibly 6.00%. Both of these will be balloon rates so it really won't make much difference. They will go up inside 1 year again. Yes some home prices are to high and some are to low, depending on the area you live within.
It is doubtful mortgages will ever get down to 3%, but it is possible.
You can not compare saloon loans and home loans. The low rates offered for car purchases are paid down by any the car maker or the trader. Instead of offering money off, they apply that amount to lower the interest rate. That is how you end up beside zero percent loans.
We probably won't ever hold 3% home mortgages. But if the fact that we don't prevents people from buying homes that they can't really afford, consequently maybe that's a good point. As for housing prices needing to come down, that's simple economics - if the prices are too high, afterwards people won't buy 'em, and it'll correct itself over time.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very critical to deciding how much you should pay every month so it is always a good perception to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to decline, so would the amount you would have to pay.
http://www.worldbestloans.com/Mortgage%20Loan.htm
Monthly repayments made on your mortgage and the amount that be borrowed, is determined by current mortgage interest rates. Different companies offer different interest rates so it is a good belief to shop around for the best deal before settling on one faddy lender.
Related Questions:
Will anyone refinance my adj rate Mortgage at 120% LTV?
I have a mortgage with Wells Fargo specifically going to reset in 8 months. I know I am far out but the loan is 210K and its worth 190K right now. Wells Fargo will not back me (which I cant understand since they have...
I bought a SUV final year and the deal was any $5,000 off (and have 10% financing) or no rebate and grant 2.99% interest rate. To me, those who took the 2.99% deal paid $5000 more for one and the same SUV. For the dealership though, they were able to market it for more than what others thought it might be worth.
I think housing prices still need to jump down a lot more. I am wondering if the government can present incentives or interest free loans to banks so that they can offer super low rates surrounded by the 3% range to get ancestors to buy at these higher prices. Then the economy awakens again. Yes near will still be foreclosures but then a turnaround will be coming quicker.
I have talk to realtors over the past few years and it is always matching. "There is no way rates will go lower than very soon.
So is my idea correct or is there pretty much no agency we can have 3% mortgages. If not 3%, how far down can they go?
Answers:
First your right about the SUV. Housing rates will never jump below 4.99%, possibly 6.00%. Both of these will be balloon rates so it really won't make much difference. They will go up inside 1 year again. Yes some home prices are to high and some are to low, depending on the area you live within.
It is doubtful mortgages will ever get down to 3%, but it is possible.
You can not compare saloon loans and home loans. The low rates offered for car purchases are paid down by any the car maker or the trader. Instead of offering money off, they apply that amount to lower the interest rate. That is how you end up beside zero percent loans.
We probably won't ever hold 3% home mortgages. But if the fact that we don't prevents people from buying homes that they can't really afford, consequently maybe that's a good point. As for housing prices needing to come down, that's simple economics - if the prices are too high, afterwards people won't buy 'em, and it'll correct itself over time.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very critical to deciding how much you should pay every month so it is always a good perception to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to decline, so would the amount you would have to pay.
http://www.worldbestloans.com/Mortgage%20Loan.htm
Monthly repayments made on your mortgage and the amount that be borrowed, is determined by current mortgage interest rates. Different companies offer different interest rates so it is a good belief to shop around for the best deal before settling on one faddy lender.
Related Questions:
Will anyone refinance my adj rate Mortgage at 120% LTV?
I have a mortgage with Wells Fargo specifically going to reset in 8 months. I know I am far out but the loan is 210K and its worth 190K right now. Wells Fargo will not back me (which I cant understand since they have...