If we enter a term of hyperinflation contained by the US, what would start to fixed rate mortgages?
for example a 30 year at 6% interest. Do they change it?
Answers:
well from what i recognize,
we can only enter a period of hyperinflation if the STUPID board of governors within the federal reserve (headed by ben bernanke) lower the key interest rate any lower (it is currently at 2%, which is down from like 6% purely over a year ago).
this is the rate at which commercial banks and the us government can borrow money at, and anything above that rate that the commercial bank charge is pretty much their profit.
considering the recent financial blow to the us economy, it is unlikely that with the feed lowering the interest rate, banks will offer mortgage loans at lower interest rates as very well since they have to make their "lost" money backbone.
for that reason, even IF we enter a period of hyperinflation, it is HIGHLY unlikely that bank will lower their 30 year fixed loans, HOWEVER, assuming they did, people with "6%" interest rates on their mortgages can refinance their homes into the lower rate, utter, assuming the bank offers a rate lower consequently the 6%.
u must understand though, that refinancing a home into a new lower rate most imagined will penalize the borrower in some monetary way, but worst past its sell-by date, the newly refinanced loan will initiate a NEW 30 year mortgage loan. obviously, if you are 15 years into paying sour your house, you are better off with sticking near your current 'fixed' mortgage, however, if the interest rate drops from your current fixed 6% and now the banks are offering 5% (assuming u qualify), and if you've simply had your mortgage loan for a day to a few years (i'd voice 5 years tops), then yeah, it might be beneficial to refinance. Source(s): i'm really not that smart, i just read a great deal.
oh, and i just got my B.S. scope in business administration -- marketing
Related Questions:
Can I sue my mortgage broker? I signed a pious principle estimate for a rate of 4.75%...?
Verified repeatedly over the phone and via email that the rate was locked only to be notify yesterday that they couldn't get that rate and they could only hold out me 5.5%. Had I known...
Answers:
well from what i recognize,
we can only enter a period of hyperinflation if the STUPID board of governors within the federal reserve (headed by ben bernanke) lower the key interest rate any lower (it is currently at 2%, which is down from like 6% purely over a year ago).
this is the rate at which commercial banks and the us government can borrow money at, and anything above that rate that the commercial bank charge is pretty much their profit.
considering the recent financial blow to the us economy, it is unlikely that with the feed lowering the interest rate, banks will offer mortgage loans at lower interest rates as very well since they have to make their "lost" money backbone.
for that reason, even IF we enter a period of hyperinflation, it is HIGHLY unlikely that bank will lower their 30 year fixed loans, HOWEVER, assuming they did, people with "6%" interest rates on their mortgages can refinance their homes into the lower rate, utter, assuming the bank offers a rate lower consequently the 6%.
u must understand though, that refinancing a home into a new lower rate most imagined will penalize the borrower in some monetary way, but worst past its sell-by date, the newly refinanced loan will initiate a NEW 30 year mortgage loan. obviously, if you are 15 years into paying sour your house, you are better off with sticking near your current 'fixed' mortgage, however, if the interest rate drops from your current fixed 6% and now the banks are offering 5% (assuming u qualify), and if you've simply had your mortgage loan for a day to a few years (i'd voice 5 years tops), then yeah, it might be beneficial to refinance. Source(s): i'm really not that smart, i just read a great deal.
oh, and i just got my B.S. scope in business administration -- marketing
Related Questions:
Can I sue my mortgage broker? I signed a pious principle estimate for a rate of 4.75%...?
Verified repeatedly over the phone and via email that the rate was locked only to be notify yesterday that they couldn't get that rate and they could only hold out me 5.5%. Had I known...