Wow, Fed cuts rate to 3.5%

[Wagner]

http://money.cnn.com/2008/01/22/news...ex.htm?cnn=yes


Dang........that should send the dollar even farther down the toilet.

[primetime]

I agree....Its like fighting a losing battle....

[brian5]

Selfishly, I WANT to see these rate cuts. I have to refinance my house in the next 6 months and I want a rate that I can afford...

[Wagner]

Originally Posted by primetime

I agree....Its like fighting a losing battle....

The EU made a great point. The falling dollar and recession in the US economy is a direct result of the following:

- Housing collapse
- Trade deficit

100% accurate IMO.

The 'good' things (for lack of a better word) that will come from this will be lower interest costs on consumer loans, lower fuel prices and possibly tax credits but none of this will aid the failing dollar. There must be a change in corporate attitude at the highest levels.

I don't know if anyone has followed it but Wacovia and BofA were barely profitable in the 4th quarter. They had drops of 95-98%....HUGE.

[E61Silver]

The reality is that we had a housing bubble that was supporting the whole economy.

I think the rate cuts will help a little however it will be a difficult year.

It should interesting how the market does today, world wide markets were down big time yesterday and the Fed's action was taken in order to advert a hug market drop.

[GUINNESS]

I want to refinance my house but have no clue how to go about it.... and i hate the whole having to pay to refinance

Since we just purchased June 07, should I wait a little longer or try and jump on the lowering interest rates?

[Wagner]

Drops like a rock, already fell 400 points.

[E61Silver]

Originally Posted by Wagner

Drops like a rock, already fell 400 points.

It might be time to get back into the market?

[AzX5]

Originally Posted by GUINNESS

I want to refinance my house but have no clue how to go about it.... and i hate the whole having to pay to refinance

Since we just purchased June 07, should I wait a little longer or try and jump on the lowering interest rates?

You don't have "No-cost" re-finance options out there? You usually pay ~0.25% higher rate but the broker pays all closing costs, including appraisal, etc. The upside is, if rates continue to drop you can re-finance again with no out of pocket costs.

Paying to re-finance is money thrown out the window, since it takes years to re-coup the closing costs and rates may continue to fall which you wouldn't be able to take advantage of.

[E61Silver]

Originally Posted by GUINNESS

I want to refinance my house but have no clue how to go about it.... and i hate the whole having to pay to refinance

Since we just purchased June 07, should I wait a little longer or try and jump on the lowering interest rates?

Why do you want to refinance?

In order to help please answer the following:

What is the terms of your current debt:

1) Rate, fixed or variable

2) Term of loan

3) Loan amount?

4) Current value of home?