fred's Blog
fred's Blog

A Piece of Something
Rating 0

My First Post.

Posted by fred333, 27 Mar 2008, 09:00 PM

Hi everyone,

This is my first blog entry and I wanted to talk about my financial issues. I recently went to the banker and I had a bunch of questions concerning my home mortgage. I was sucked into a fixed precentage rate one and now that the market is so poor I wanted to see if I could get a lower rate on my home equity loan. This is what my banker told me:

"As the name suggests, this type of home lending loan has an interest rate that does not fluctuate for the entire life of the mortgage. When you apply for this kind of home lending loan, you would usually try to "lock in" a particular interest rate, thus guaranteeing that you will be paying the rate you were quoted when you applied for the home lending loan.

Pros: No matter what happens in the real estate market or the economy, you will always pay the same interest rate, and payment, for the life of the home lending loan. If you plan to stay in your home for at least 7-10 years, this should be your only option.

Cons: Being locked into one particular rate means that even if rates go DOWN, you still will be paying your higher fixed rate. Of course, you could always refinance your home lending loan at the new rate."

So I guess it is a no go on the lowering of the rate, but it was worth a try.



Comments

  NickTheGreek, 27 Mar 2008, 11:22 PM

Do you smell any spam nearby ?

 
« Next Oldest · fred's Blog · Next Newest »