Will the interest rate cut help me?
by Mortgage Rates on Wednesday, September 29th, 2010 | 6 Comments
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Lovely,
Wow! 9.65% is outrageous. The answer is maybe. It depends on what index your rate is determined by. Every mortgage is tied to an index. It depends on how the index related to your mortgage reacts to the Fed action. Some indexes do nothing. If your mortgage is tied to a 30 year bond market, then the Fed rate has virtually nothing to do with how your rate reacts. However usually ARM rates are tied to short term index rates. You need to look at your mortgage documents and see which index you are tied to. All that said. You should find a mortgage lender to refinance your loan. 9.65 is outrageous. If you can do no better, you should consider selling and renting until you get whatever issues resolved that are causing such a high rate.
Why do you have an adjustable rate on your mortgage? I just locked in at 5.125% You need to refinance!
That depends on what your adjustment to pegged to. Read your loan note.
It will definitely benefit you just as long as you don’t have any mortgage lates, credit is good, and you have enough equity to refinance.
look in your mortgage paperwork. you will find the index your mortgage is based on and the margin, the amount that is added to this index to get the interest rate you will be paying. most ARMS are based on the LIBOR.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month