Sep-11-2008
the interest rates on mortgage loans are based on prime?
when allen greenspan changed the interest rates to rise on home loans to stop inflation he was obviously wrong..when he was replaced, the interest rates based on prime started to decline to prevent stagflation.as of now, where do think the prime rate will go…higher to stop inflation or lower to create stagflation?
I don’t know. I’m justing hoping that it stays low for another few months, so we can sel our house, and buy a new one with a good interest rate.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every monthcompanies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.
Mortgage interest rates are NOT directly tied to fed “prime.”
Prime does not relate to regular mortgage rates. However, HELOCs are usually affected by prime. The rate the Feds set is for short term money & prime is usually 3 points higher than that.
Um, greenspan was right. Inflation is worse than when the greedy and ignorant team up together and screw themselves over.
High interest rates motivate people to spend and help keep inflation low. Those are desired effects for everyone.
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