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Holy Crap! Fed Cuts Interest Rate Half a Point !!!

Discussion in 'Issues Around the World' started by ethics, Nov 6, 2002.

  1. ethics

    ethics Pomp-Dumpster Staff Member

    The Federal Reserve, worried about the sputtering economy, cut a key interest rate by a half point on Wednesday, marking its first rate reduction this year.

    And my mortgage application is slated to go in THIS Friday. Can I get a "WOOT!!!!"?

    I wonder what the Fed saw that made them make this kind of a decision?
     
  2. Misu

    Misu Hey, I saw that.

    We signed our mortgage Sept 27 :( sure we got a good interest rate... could have been nicer, though... :(
     
  3. ethics

    ethics Pomp-Dumpster Staff Member

    Well, you can re-finance, you know.
     
  4. John R. Beanham

    John R. Beanham Typical Aussie Male

    US mortgages do not have variable interest rates?

    Over here, if the rate goes up the mortgage rate goes up the next day. If the rate goes down the mortgage rate goes down in a week or so.

    You can get 3/5/7 year fixed rates if you wish to gamble that far ahead.

    John.
     
  5. tke711

    tke711 Oink Oink Staff Member

    Not with rates this low! :)

    With these rates, the most popular mortgage would be a 30 year fixed interest rate loan.

    You could also get a 15 year fixed, or if you want an even lower rate temporarily, you could get a 3, 4 or 5 year ARM (adjustable rate mortgage). With ARM's the rate stays fixed for the 3, 4 or 5 years and then become variable for the balance of the 30 years.

    Edit: My wife and I just closed on our new mortgage a month ago and we got a 6% 30 year fixed. I wonder what the rate will go down to now.
     
  6. Misu

    Misu Hey, I saw that.

    We closed at 6.375 and 0 points. Not bad for a first time buyer. We also closed a little over a month ago.

    I don't know if it would be worth refinancing now. What affect could this .5 percent decrease make on our loan if we refinanced?
     
  7. mikeky

    mikeky Member

    If the rate you could get drops 0.5, it could save a fair amount over the long run depending on the loan value; there's all kinds of mortgage calculators out there, like this <a href="http://www.interest.com/calculators/monthly-payment.shtml">one</a>, that can help you determine what the difference would be.

    But it sure can be a pain to refinance.
     

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