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november12003
Love my boys...
Member since 5/05 2412 total posts
Name:
Jenn
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Re: Updated: Interest Rates skyrocket
I went away this week, and when I came back my interest rate is now up to 6.625% 
I don't even know what to do at this point 
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Posted 11/3/05 11:56 AM  |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by november12003
I went away this week, and when I came back my interest rate is now up to 6.625%
I don't even know what to do at this point
Look at it this way and the way some other people on here seem to want to look at it....
.... be glad you aren't living in 1981 where interest rates were at 19%. You are getting a REAL BARGAIN right now on our rate. 
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| Posted 11/3/05 12:01 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Updated: Interest Rates skyrocket
Posted by DjPiLL
Posted by shamrock12472
Mortgage rates are still in the parameters of historical lows...The link provides charts
Historical Mortgage Rates
Look at the last chart - we are still at 40 lows.
And considering that I wasn't even born 40 years ago... nor have I had a full-time job even 10 years ago... what happened in 1965 is kinda moot if you ask me. 
We all used to be able to go see a movie for 5 cents. Does this mean the price of movie tickets are at a 200 year high?
I personally care whats going on NOW.... not what went out 40 years ago.
My point being that interest rates move in cycles, just like businesses and the economy. You can't have recovery without an increase in inflation; hence an increase in interest rates. Without inflation we would have stagnation or deflation neither which is good for a recovery economy.
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| Posted 11/3/05 12:02 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by shamrock12472
My point being that interest rates move in cycles, just like businesses and the economy. You can't have recovery without an increase in inflation; hence an increase in interest rates. Without inflation we would have stagnation or deflation neither which is good for a recovery economy.
I am well aware on how interest rates affect inflation.
I just find a major flaw in somebody's logic when they say "well its still better now than at xxxxxxxxxx time".
Thats like hearing a news report saying 1000 soldiers were killed in Iraq... and some idiot comes out and tries to tell an affected family member "well hey... thats still historically low wartime loss of life... compared to Vietnam, the Civil War, etc."
Every expert is saying rates are skyrocketing right now. These high rates (even though they are historically low)... may make a difference between someone having food on their plate that month or not.
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| Posted 11/3/05 12:07 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Updated: Interest Rates skyrocket
Posted by DjPiLL
Posted by shamrock12472
My point being that interest rates move in cycles, just like businesses and the economy. You can't have recovery without an increase in inflation; hence an increase in interest rates. Without inflation we would have stagnation or deflation neither which is good for a recovery economy.
I am well aware on how interest rates affect inflation.
I just find a major flaw in somebody's logic when they say "well its still better now than at xxxxxxxxxx time".
Thats like hearing a news report saying 1000 soldiers were killed in Iraq... and some idiot comes out and tries to tell an affected family member "well hey... thats still historically low wartime loss of life... compared to Vietnam, the Civil War, etc."
Every expert is saying rates are skyrocketing right now. These high rates (even though they are historically low)... may make a difference between someone having food on their plate that month or not.
Your comparison is like comparing apples to oranges. Death and interest rates are not comparible.
What experts have stated that interest rates are skyrocketing? Nothing I have read or heard have indicated to rates skyrocketing especially when Greenspan is likely to continue to raise rates throught the next 2 FOMC meeting and leading indicators pointing to continued recovery.
ETA: I don't see why the rise in rates would have anything to do with whether or not food is put on the table; that would be do to overextending income. Plus, a raise in rates should, and seems to have, driven down housing prices.
Message edited 11/3/2005 12:21:46 PM.
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| Posted 11/3/05 12:19 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by shamrock12472
Your comparison is like comparing apples to oranges. Death and interest rates are not comparible.
What experts have stated that interest rates are skyrocketing? Nothing I have read or heard have indicated to rates skyrocketing especially when Greenspan is likely to continue to raise rates throught the next 2 FOMC meeting and leading indicators pointing to continued recovery.
ETA: I don't see why the rise in rates would have anything to do with whether or not food is put on the table; that would be do to overextending income. Plus, a raise in rates should, and seems to have, driven down housing prices.
Did you not read the link I posted a few posts ago? I can link MANY more articles about this. And I am talking recent articles... not articles that were posted moons ago.
And if you don't think the rise in rates would affect people's lifestyles? What about the very high percentage of people who recently bought with either an ARM or IO loan? Try explaining to them its no big deal.
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| Posted 11/3/05 12:24 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Updated: Interest Rates skyrocket
Posted by DjPiLL
Posted by shamrock12472
Your comparison is like comparing apples to oranges. Death and interest rates are not comparible.
What experts have stated that interest rates are skyrocketing? Nothing I have read or heard have indicated to rates skyrocketing especially when Greenspan is likely to continue to raise rates throught the next 2 FOMC meeting and leading indicators pointing to continued recovery.
ETA: I don't see why the rise in rates would have anything to do with whether or not food is put on the table; that would be do to overextending income. Plus, a raise in rates should, and seems to have, driven down housing prices.
Did you not read the link I posted a few posts ago? I can link MANY more articles about this. And I am talking recent articles... not articles that were posted moons ago.
And if you don't think the rise in rates would affect people's lifestyles? What about the very high percentage of people who recently bought with either an ARM or IO loan? Try explaining to them its no big deal.
I never said it wasn't a big deal that interest rates are raising; it just shouldn't be a surprise to anyone that they are increase and it fits a pattern. Yes, those who bought homes on an ARM or IO or variable may have difficulty affording it; but is it because of raising interest rates or buying something that wasn't in their price range based on income?
Also, I'm not referring to articles that were posted moons ago. Due to what I do for a living, I get economic news updates through out the day. I would be interested to read your articles though.
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| Posted 11/3/05 12:33 PM |
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november12003
Love my boys...
Member since 5/05 2412 total posts
Name:
Jenn
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Re: Updated: Interest Rates skyrocket
Posted by DjPiLL
Posted by november12003
I went away this week, and when I came back my interest rate is now up to 6.625%
I don't even know what to do at this point
Look at it this way and the way some other people on here seem to want to look at it....
.... be glad you aren't living in 1981 where interest rates were at 19%. You are getting a REAL BARGAIN right now on our rate.
I know, it's just so disheartening. When we started back in May, the rates were at 5.875%, and now 6.625%. That's over $100 difference a MONTH!!! I know they're still low, but it's just crazy how they fluctuate.
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| Posted 11/3/05 12:36 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
You specifically said "you don't see how the rise in rates would have anything to do with putting food on the table."
I just explained how that can very well be true.
I don't agree with IO or ARM loans myself... as people usually select these to avoid overextending themselves on a 30yr fixed.
Here is another article... showing the 1yr ARM is now at a 3yr high.
Linky
I am just saying that even though these may be "historically low"... a lot of people will ultimately get screwed.
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| Posted 11/3/05 12:39 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Updated: Interest Rates skyrocket
I read the article that you provided a link for to www.Bankrate.com. I didn't see where they stated that rates were skyrocketing but seems to say the opposite:
This is one quote from the article:
"I think the big answer is rates are still low, from a historical perspective," says Jim Svinth, executive vice president, capital markets for LendingTree. "A mentality with borrowers, particularly when they see rates increase from a low level, is, 'This is it. If I'm going to refinance, I'd better do it.'"
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| Posted 11/3/05 12:40 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by shamrock12472
I read the article that you provided a link for to www.Bankrate.com. I didn't see where they stated that rates were skyrocketing
Go to http://www.bankrate.com home page. Click on the link in the front that says MORTGAGE RATES SKYROCKET.
That will take you to the link I posted.
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| Posted 11/3/05 12:45 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Updated: Interest Rates skyrocket
I have to step out but I will read it when I get back. Being that I am in the field of Economics, I'm really not a fan of Bankrate.com as far as commentary but I am always interested in reading varying opinions. I have to see if I can find it in my email, but I have a very interesting commentary on oil prices and where they see them over the next few years...it actually sees them dropping back to the $30's range.
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| Posted 11/3/05 12:54 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Updated: Interest Rates skyrocket
Posted by DjPiLL
I am well aware on how interest rates affect inflation.
I just find a major flaw in somebody's logic when they say "well its still better now than at xxxxxxxxxx time".
Thats like hearing a news report saying 1000 soldiers were killed in Iraq... and some idiot comes out and tries to tell an affected family member "well hey... thats still historically low wartime loss of life... compared to Vietnam, the Civil War, etc."
Every expert is saying rates are skyrocketing right now. These high rates (even though they are historically low)... may make a difference between someone having food on their plate that month or not.
I'll disregard your "analogy" that calls me - and anyone who disagrees with your brand of research - an idiot.
Anyone that will have a hard time putting a meal on their table b/c of the slight rise in interest rates, is overextending themselves. They're looking out of their price range and are being unrealistic.
As for your linkies - I still say you're over dramatizing the situation. Every article I have read states that yes, rates are rising...but they are rising MODESTLY.
I don't understand why it is so difficult for you to comprehend that people can easily afford a house in this market with these still MODEST rates...but it is possible...and I assure you, no meals will be missed. 
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| Posted 11/3/05 12:55 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: Updated: Interest Rates skyrocket
Posted by DjPiLL
You specifically said "you don't see how the rise in rates would have anything to do with putting food on the table."
I just explained how that can very well be true.
I don't agree with IO or ARM loans myself... as people usually select these to avoid overextending themselves on a 30yr fixed.
Here is another article... showing the 1yr ARM is now at a 3yr high.
Linky
I am just saying that even though these may be "historically low"... a lot of people will ultimately get screwed.
The way I see it- those people who will get "screwed" have their selves to blame. By taking risky mortgages so they could "afford more house" they set themselves up for this possible eventuality.
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| Posted 11/3/05 12:58 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by Sassyz75
The way I see it- those people who will get "screwed" have their selves to blame. By taking risky mortgages so they could "afford more house" they set themselves up for this possible eventuality.
Of course. I have said this over and over in the past... and I have actually gotten flamed for saying so. Go figure.
Posted by Colleen9304
I don't understand why it is so difficult for you to comprehend that people can easily afford a house in this market with these still MODEST rates...but it is possible...and I assure you, no meals will be missed.
Funny you say that because in the past I have read post after post on this site and LIW from women saying "how are they ever going to afford a house with these prices and interest rates" bla bla bla. I guess we can't all be as financially well-off as you are.
And why do you continually say that "I" am overdramatizing the situation. I am merely posting what articles written by other people.
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| Posted 11/3/05 1:40 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
And here is more food for thought. Yeah if an interest rate goes from 5.25% to 6.25%... it may only mean 100-200 more a month so it shouldn't overextend anybody too much. And if that makes the difference in not putting the food on the table... then they did overextend themself.
But bear in mind... on a 400k mortgage... at 5.25% you are paying a total of 395k in mortgage interest alone.
Rates jump up to 6.25%... hey... its only a MODEST jump according to some... you are now paying 664k in interest!
Thats more than a 50% increase in total interest paid on just one percentage point. I can't imagine for the life of me why somebody would overdramatize losing out on 259k in their own cash.
Remember everyone... paying an additional 259k towards your house is only a MODEST increase.
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| Posted 11/3/05 1:52 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: Updated: Interest Rates skyrocket
Posted by DjPiLL
And here is more food for thought. Yeah if an interest rate goes from 5.25% to 6.25%... it may only mean 100-200 more a month so it shouldn't overextend anybody too much. And if that makes the difference in not putting the food on the table... then they did overextend themself.
But bear in mind... on a 400k mortgage... at 5.25% you are paying a total of 395k in mortgage interest alone.
Rates jump up to 6.25%... hey... its only a MODEST jump according to some... you are now paying 664k in interest!
Thats more than a 50% increase in total interest paid on just one percentage point. I can't imagine for the life of me why somebody would overdramatize losing out on 259k in their own cash.
Remember everyone... paying an additional 259k towards your house is only a MODEST increase.
But does anyone ever really think mortgages are going to stay this low forever- and isn't that why you lock in rates? I don't own a home, but this is why- b/c to own a home I'd have to do a "weird" mortgage that would put me in this position...
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| Posted 11/3/05 1:56 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by Sassyz75
But does anyone ever really think mortgages are going to stay this low forever- and isn't that why you lock in rates? I don't own a home, but this is why- b/c to own a home I'd have to do a "weird" mortgage that would put me in this position...
Like I have said since page one. I was merely posting on this thread for an informative purpose only.
People can do whatever the hell they want. I don't really care. I am locked in on my mortgage at close to a whole percentage point less than where the rates are at now. (thank god I locked in at the time I felt was the best time). So it doesn't affect me at all.
And come on Sassy... EVERYONE should be able to afford a home. So get the ball rolling!
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| Posted 11/3/05 1:59 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Updated: Interest Rates skyrocket
So for those who haven't bought yet, shouldn't? B/c they're going to be paying more on the same mortgage than someone is with a lower rate?
Being that I haven't found a house yet, I'm choosing to be optimistic b/c the market is actually not that bad - without taking it to a level of personal insults, might I add.
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| Posted 11/3/05 2:03 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by Colleen9304
So for those who haven't bought yet, shouldn't? B/c they're going to be paying more on the same mortgage than someone is with a lower rate?
If you plan on being in your house for at minimum 5-10 years... there is never a bad time to buy IMO. There are never bad times to buy in this case.... only bad WAYS.
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| Posted 11/3/05 2:11 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Updated: Interest Rates skyrocket
One thing - I read in the times today that if the tax proposal goes through concerning the reduction of the mortgage tax deduction, the price of homes would drastically decrease.
I am not sure when or if it would pass, but it is food for thought. So, even if mortgage interest rates climbed, the price of homes might fall.
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| Posted 11/3/05 3:09 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Updated: Interest Rates skyrocket
Posted by LSP2005
One thing - I read in the times today that if the tax proposal goes through concerning the reduction of the mortgage tax deduction, the price of homes would drastically decrease.
I am not sure when or if it would pass, but it is food for thought. So, even if mortgage interest rates climbed, the price of homes might fall.
I don't even want to think about this... cause I am sure tihs will affect me.
Frankly... i think the proposed tax change is too drastic and won't get passed.
If it does get passed... it will probably have some grandfather clause for people that have existing mortgages. God I hope I close next week so I then have the possibility for being grandfathered in if they allow it.
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| Posted 11/3/05 3:36 PM |
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