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Feds cut rate 3/4 point


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?

 

Look at the actual rate implications of this Those should be known in the next couple of days. Compare what you have to what you see. Yahoo tracks the mortgage rates daily on Yahoo Finance...

 

I probably won't -- I have 5% on a 15 year fixed since 2003--rates haven't touched that yet...

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Look at the actual rate implications of this Those should be known in the next couple of days. Compare what you have to what you see. Yahoo tracks the mortgage rates daily on Yahoo Finance...

 

I probably won't -- I have 5% on a 15 year fixed since 2003--rates haven't touched that yet...

5.23 on a 15 year fixed today. Rates have gone down about .4% since Sunday. Just need to keep an eye on them, they are all over the place.

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If you have an ARM, like me, first ask your mortgage company for a loan modification. With a good payment history, they should agree to give you a fixed rate at or near regular fixed rates when your reset date arrives. It'll spare you the closing costs and fees of an FHA or whatever. (I looked at a refi in December, and they came back with a deal that would have added $11,000 to my principal! :censored: )

 

Main thing is to keep your eye on the LIBOR figure: http://www.bankrate.com/brm/ratewatch/other-indices.asp.

It's the rate most banks and mortgage companies will reset your ARM from (for example: a LIBOR of 2.5, your contract calls for a new rate of 4 points above LIBOR in the final 60 days of your teaser rate = you'll get reset to 6.5 percent for 6 months or so, before another reset comes along). If the LIBOR rate is reasonable when the time comes, you can wait out a refi for another six months to a year, depending on your original terms.

 

Since November or December, the LIBOR's plunged -- I don't know if these Fed rate cuts will affect it or not.

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I think these rates and those for the mortgage/refinance markets don't always move in the same direction. It is perhaps because they are sorta different markets with their own supply-demand balance creating the interest rates. But what do I know ? I am in the market for a refi also and have asked a friend who is a broker to tell me when I should pull the trigger. He called me today to ask me to be reachable on Wednesday.

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