what is the difference between a fixed rate and a variable rate?
Q. im trying to get a load for about $8,000 but i dont know if a fixed rate is a good choice. help!
Asked by mimi - Wed Oct 22 01:29:40 2008 - - 2 Answers - 0 Comments
A. Yes most loans are fixed rate and for a loan that small it would be the best way. A variable rate can be like a credit card where they change it at will or like an ARM mortgage where it is tied to an index with a margin.
Answered by shipwreck - Wed Oct 22 01:43:59 2008
Q. im trying to get a load for about $8,000 but i dont know if a fixed rate is a good choice. help!
Asked by mimi - Wed Oct 22 01:29:40 2008 - - 2 Answers - 0 Comments
A. Yes most loans are fixed rate and for a loan that small it would be the best way. A variable rate can be like a credit card where they change it at will or like an ARM mortgage where it is tied to an index with a margin.
Answered by shipwreck - Wed Oct 22 01:43:59 2008
Why would someone pick an adjustable rate mortgage over a fixed rate one?
Q. I just read that foreclosures are up 78% in my state, and a lot of them were because people could not afford to pay on their skyrocketing adjustable rate mortgage. I have never bought a home before, but I would like to know why anyone would choose such a mortgage. Are fixed rate mortgages so much harder to obtain?
Asked by Kiwi - Thu Jul 10 13:24:56 2008 - - 6 Answers - 0 Comments
A. Part of the reason is all people want to hear is the rate, they make the decision based on what the rate is they do not look at the big picture. Up until the last 12 months or so people would hear the lower rate and say that is what I want. An adjustable rate mortgage is good for a couple of reasons; 1) if you plan on staying in the home for 3 years then a 5 year arm would be good for you. 2) If you know that you will definately refinance before the loan starts to adjust then it would be a good idea. the other problem lower rates on the arms let people buy bigger homes then what they could afford. there is a program out there called an option arm which the monthly payment was based on 2% but you accrued interest at 6%. You had 4… [cont.]
Answered by shawn1974m - Thu Jul 10 13:55:45 2008
Q. I just read that foreclosures are up 78% in my state, and a lot of them were because people could not afford to pay on their skyrocketing adjustable rate mortgage. I have never bought a home before, but I would like to know why anyone would choose such a mortgage. Are fixed rate mortgages so much harder to obtain?
Asked by Kiwi - Thu Jul 10 13:24:56 2008 - - 6 Answers - 0 Comments
A. Part of the reason is all people want to hear is the rate, they make the decision based on what the rate is they do not look at the big picture. Up until the last 12 months or so people would hear the lower rate and say that is what I want. An adjustable rate mortgage is good for a couple of reasons; 1) if you plan on staying in the home for 3 years then a 5 year arm would be good for you. 2) If you know that you will definately refinance before the loan starts to adjust then it would be a good idea. the other problem lower rates on the arms let people buy bigger homes then what they could afford. there is a program out there called an option arm which the monthly payment was based on 2% but you accrued interest at 6%. You had 4… [cont.]
Answered by shawn1974m - Thu Jul 10 13:55:45 2008
What options do I have when my fixed rate mortgage come to an end in July?
Q. I am a pensioner with a mortgage with the Halifax in the UK. I am at present on a fixed rate of 5.9 on a repayment mortgage. However, this fixed rate finishes in July. What are my options and what are the chances of me paying more than I am now? I am stretched to the limit now! Thank you.
Asked by Jennywren - Tue May 4 07:51:57 2010 - - 2 Answers - 0 Comments
A. I would think nobody can answer this question except the people that you have your mortgage with. Before your mortgage comes due check around with other places to see what their rates are, then you will be in a better position to answer your own question.
Answered by Inquisitive Jim - Tue May 4 08:25:25 2010
Q. I am a pensioner with a mortgage with the Halifax in the UK. I am at present on a fixed rate of 5.9 on a repayment mortgage. However, this fixed rate finishes in July. What are my options and what are the chances of me paying more than I am now? I am stretched to the limit now! Thank you.
Asked by Jennywren - Tue May 4 07:51:57 2010 - - 2 Answers - 0 Comments
A. I would think nobody can answer this question except the people that you have your mortgage with. Before your mortgage comes due check around with other places to see what their rates are, then you will be in a better position to answer your own question.
Answered by Inquisitive Jim - Tue May 4 08:25:25 2010
I currently have an adjustable rate mortgage loan and would like to set a fixed rate ?
Q. I have heard on the news that we can petition our lender for a fixed rate. They also gave a phone number to a place called, Homeowners Unity Foundation whom I talked to, and they say they charge $2500.00 to help you because they work with lawyers that help the process move faster. But they do not guarantee results. Can anyone give me some insight or suggestions?
Asked by jose - Sat Oct 25 20:34:50 2008 - - 3 Answers - 0 Comments
A. Stay away from this HUF outfit. Sounds like a rip off. Read your mortgage documents. Some have a clause that you can convert for a fee (usually 1%). If so, contact the lender and ask what you need to do to accomplish this. If you don't have this clause, you can still ask them to convert it. There may be more fees as it will actually be a refinance.
Answered by Sharon T - Sat Oct 25 21:00:57 2008
Q. I have heard on the news that we can petition our lender for a fixed rate. They also gave a phone number to a place called, Homeowners Unity Foundation whom I talked to, and they say they charge $2500.00 to help you because they work with lawyers that help the process move faster. But they do not guarantee results. Can anyone give me some insight or suggestions?
Asked by jose - Sat Oct 25 20:34:50 2008 - - 3 Answers - 0 Comments
A. Stay away from this HUF outfit. Sounds like a rip off. Read your mortgage documents. Some have a clause that you can convert for a fee (usually 1%). If so, contact the lender and ask what you need to do to accomplish this. If you don't have this clause, you can still ask them to convert it. There may be more fees as it will actually be a refinance.
Answered by Sharon T - Sat Oct 25 21:00:57 2008
Is it better to pay a variable rate or fixed rate on electricity in Texas?
Q. I'm buying my first house, moving to Pflugerville, and need to sign up for electricity and natural gas. Energy companies are offering fixed rate plans at 9.3 cents with a contract and variable rates at 8.9 cents without a contract. What is cheaper in the long run? What is the best way to go? Also, do energy companies also hook up natural gas or do I need to shop for a second company for that?
Asked by Neil C - Tue May 11 14:49:31 2010 - - 2 Answers - 0 Comments
A. Your electric and gas will be separate companies in Pflugerville. The fixed rate probably locks you in for 2 years. With-in two years, since there is deregulation in the Texas energy industry, I am sure you could find an energy company who will have a competitive rate if your 8.9 cents rises above an acceptable level for you. I may be wrong, but I kind of see this energy thing like the home phone long distance service was in the 80's...you could call each one and get a better deal every other week.
Answered by texeyes - Thu May 13 00:33:18 2010
Q. I'm buying my first house, moving to Pflugerville, and need to sign up for electricity and natural gas. Energy companies are offering fixed rate plans at 9.3 cents with a contract and variable rates at 8.9 cents without a contract. What is cheaper in the long run? What is the best way to go? Also, do energy companies also hook up natural gas or do I need to shop for a second company for that?
Asked by Neil C - Tue May 11 14:49:31 2010 - - 2 Answers - 0 Comments
A. Your electric and gas will be separate companies in Pflugerville. The fixed rate probably locks you in for 2 years. With-in two years, since there is deregulation in the Texas energy industry, I am sure you could find an energy company who will have a competitive rate if your 8.9 cents rises above an acceptable level for you. I may be wrong, but I kind of see this energy thing like the home phone long distance service was in the 80's...you could call each one and get a better deal every other week.
Answered by texeyes - Thu May 13 00:33:18 2010
How to convert HELOC to fixed rate mortgage and pay not tax penalty when house is sold?
Q. Hi, To buy new house I took HELOC against my old house which I planned to sell shortly to pay off HELOC. I could not sell my old house so I am using it as rental property now. I want to convert HELOC into fixed rate secondary mortgage. If I convert HELOC into fixed rate mortgage, when I sell my rental property will the money from sale be transferred to my primary mortgage company without lump sum distribution to avoid tax penalty? Thank you
Asked by Boris - Thu Jun 5 09:11:15 2008 - - 2 Answers - 0 Comments
A. You might be able to convert the heloc, but two items, one the rate on home equity loans are usually high, and two, home equities are tougher to come by, especially on a rental property. you could look into locking the rate like mary suggested, it depends on the lender and when you took out the heloc as the lock in feature has only been around for a few years. If you sell the rental, any proceeds will be given to you, other arrangements I would consult the irs or a cpa. you may want to look at bank of america for the home equity, I was just talking to a broker contact of mine and she claims they are doing home equities still, best of luck
Answered by Big daddy - Thu Jun 5 11:11:24 2008
Q. Hi, To buy new house I took HELOC against my old house which I planned to sell shortly to pay off HELOC. I could not sell my old house so I am using it as rental property now. I want to convert HELOC into fixed rate secondary mortgage. If I convert HELOC into fixed rate mortgage, when I sell my rental property will the money from sale be transferred to my primary mortgage company without lump sum distribution to avoid tax penalty? Thank you
Asked by Boris - Thu Jun 5 09:11:15 2008 - - 2 Answers - 0 Comments
A. You might be able to convert the heloc, but two items, one the rate on home equity loans are usually high, and two, home equities are tougher to come by, especially on a rental property. you could look into locking the rate like mary suggested, it depends on the lender and when you took out the heloc as the lock in feature has only been around for a few years. If you sell the rental, any proceeds will be given to you, other arrangements I would consult the irs or a cpa. you may want to look at bank of america for the home equity, I was just talking to a broker contact of mine and she claims they are doing home equities still, best of luck
Answered by Big daddy - Thu Jun 5 11:11:24 2008
Do you have an ARM or fixed rate mortgage?
Q. And have you had an increase in your mortgage payments due to an ARM? If you are planning on purchasing a home in the future, would you prefer an ARM or a fixed rate?
Asked by royal_crown78 - Sat Sep 2 03:08:16 2006 - - 5 Answers - 0 Comments
A. I would totally use fixed rate mortgage now. For two reasons: 1. Fixed rate mortgage has similar rate as ARM. I think there is only 0.25 to 0.5% difference after fee. 2. Rate for fixed rate mortgage is near all time low. Last year was 5.7%. Now is only 6.5%.
Answered by Price is what you pay for value. - Sat Sep 2 04:41:29 2006
Q. And have you had an increase in your mortgage payments due to an ARM? If you are planning on purchasing a home in the future, would you prefer an ARM or a fixed rate?
Asked by royal_crown78 - Sat Sep 2 03:08:16 2006 - - 5 Answers - 0 Comments
A. I would totally use fixed rate mortgage now. For two reasons: 1. Fixed rate mortgage has similar rate as ARM. I think there is only 0.25 to 0.5% difference after fee. 2. Rate for fixed rate mortgage is near all time low. Last year was 5.7%. Now is only 6.5%.
Answered by Price is what you pay for value. - Sat Sep 2 04:41:29 2006
How about a fixed low percentage rate for homeowners?
Q. Why doesn't the government just tell all the banks and mortgage holders to put every homeowner in a low fixed rate plan...wouldn't that fix the foreclosure problem?
Asked by all created equal - Thu Dec 4 14:20:37 2008 - - 5 Answers - 0 Comments
A. Because we live in a free society. If this was a socialist state, the govt would control the banks and then they could do that.
Answered by Tim - Thu Dec 4 14:23:54 2008
Q. Why doesn't the government just tell all the banks and mortgage holders to put every homeowner in a low fixed rate plan...wouldn't that fix the foreclosure problem?
Asked by all created equal - Thu Dec 4 14:20:37 2008 - - 5 Answers - 0 Comments
A. Because we live in a free society. If this was a socialist state, the govt would control the banks and then they could do that.
Answered by Tim - Thu Dec 4 14:23:54 2008
Are there any financial institutions that offer a fixed rate for a unsecured personal loan?
Q. I'm looking to consolidate my credit cards with a unsecured personal loan but would like a fixed rate I could afford. Are credit unions my best choice? Is there a web site where I could compare institutions?
Asked by rbc - Mon Dec 24 08:40:51 2007 - - 2 Answers - 0 Comments
Q. I'm looking to consolidate my credit cards with a unsecured personal loan but would like a fixed rate I could afford. Are credit unions my best choice? Is there a web site where I could compare institutions?
Asked by rbc - Mon Dec 24 08:40:51 2007 - - 2 Answers - 0 Comments
How hard is it to switch from a ARM loan to a fixed rate after you have gotten the initial good deal?
Q. Can you still pull out ahead than if you had taken the higher fixed rate in the beginning?
Asked by unknown - Mon Feb 19 14:33:30 2007 - - 1 Answers - 0 Comments
A. You can refinance to a fixed rate mortgage at any time as long as you are willing to pay the fees. I would talk to a mortgage consultant and weigh the cost of refinancing versus the cost of a higher rate loan. Whether you'll come out ahead really depends on what your current rate is now, how often it will escalate, and what rate you can qualifty for for a fixed rate loan. I don't have a crystal ball, but I think rates will continue to go up, so I would look at your options now.
Answered by Kim T - Mon Feb 19 15:09:26 2007
Q. Can you still pull out ahead than if you had taken the higher fixed rate in the beginning?
Asked by unknown - Mon Feb 19 14:33:30 2007 - - 1 Answers - 0 Comments
A. You can refinance to a fixed rate mortgage at any time as long as you are willing to pay the fees. I would talk to a mortgage consultant and weigh the cost of refinancing versus the cost of a higher rate loan. Whether you'll come out ahead really depends on what your current rate is now, how often it will escalate, and what rate you can qualifty for for a fixed rate loan. I don't have a crystal ball, but I think rates will continue to go up, so I would look at your options now.
Answered by Kim T - Mon Feb 19 15:09:26 2007
What are the pros and cons of a fixed rate mortgage vs. an adjustable rate?
Q. Being that it is a new year one of my resolutions was to do more research before a jumped into anything. Being that I'm new to the housing market what are the benefits of a fixed rate mortgage compared to an adjustable rate?
Asked by vaplaya121487 - Mon Jan 1 19:52:41 2007 - - 7 Answers - 0 Comments
A. A fixed rate mortgage is a mortgage in which the monthly principal and interest payments remain the same throughout the life of the loan. The most common mortgage terms are 30 and 15 years. With a 30-year fixed rate mortgage your monthly payments are lower than they would be on a 15 year fixed rate, but the 15 year loan allows you to repay your loan twice as fast and save more than half the total interest costs While an adjustable rate mortgage or ARM is a loan in which the interest rate is periodically adjusted, moving higher or lower in the same ratio as a pre-selected index such as Treasury bill rates. ARM loans may include caps on interest rate increases in a given time period, and over the life of the loan, and may include limits on… [cont.]
Answered by aalen a - Tue Jan 2 00:18:59 2007
Q. Being that it is a new year one of my resolutions was to do more research before a jumped into anything. Being that I'm new to the housing market what are the benefits of a fixed rate mortgage compared to an adjustable rate?
Asked by vaplaya121487 - Mon Jan 1 19:52:41 2007 - - 7 Answers - 0 Comments
A. A fixed rate mortgage is a mortgage in which the monthly principal and interest payments remain the same throughout the life of the loan. The most common mortgage terms are 30 and 15 years. With a 30-year fixed rate mortgage your monthly payments are lower than they would be on a 15 year fixed rate, but the 15 year loan allows you to repay your loan twice as fast and save more than half the total interest costs While an adjustable rate mortgage or ARM is a loan in which the interest rate is periodically adjusted, moving higher or lower in the same ratio as a pre-selected index such as Treasury bill rates. ARM loans may include caps on interest rate increases in a given time period, and over the life of the loan, and may include limits on… [cont.]
Answered by aalen a - Tue Jan 2 00:18:59 2007
Is a fixed-rate mortgage better than a tracker rate in the current economic climate?
Q. I'm about to renew my mortgage and am looking into various options. Given the current economic climate and the fact that interest rates have been incredibly low over the past year or so, I'm wondering whether a fixed-rate mortgage option is better than a tracker rate. Fixed-rates are higher but will protect me from any rate increase... however tracker rates being lower, it would take several rate increases for them to become less compelling than a fixed rate... Any advise?
Asked by cinnamon - Fri Jan 8 09:00:46 2010 - - 4 Answers - 0 Comments
A. I'd rather have fixed mortgage.
Answered by Alex - Sun Jan 10 05:36:06 2010
Q. I'm about to renew my mortgage and am looking into various options. Given the current economic climate and the fact that interest rates have been incredibly low over the past year or so, I'm wondering whether a fixed-rate mortgage option is better than a tracker rate. Fixed-rates are higher but will protect me from any rate increase... however tracker rates being lower, it would take several rate increases for them to become less compelling than a fixed rate... Any advise?
Asked by cinnamon - Fri Jan 8 09:00:46 2010 - - 4 Answers - 0 Comments
A. I'd rather have fixed mortgage.
Answered by Alex - Sun Jan 10 05:36:06 2010
Is it possible to refinance an OSAP loan at a fixed rate of interest?
Q. I have an OSAP loan. The interest payments are variable and I want to switch to a fixed rate. Does anyone know how to switch the loan to a fixed rate? I would switch creditors if I could maintain the tax benefits of the OSAP loan or if the total cost of the OSAP loan is higher then the terms offered by the new creditor.
Asked by Mike R - Sat May 17 12:36:36 2008 - - 1 Answers - 0 Comments
A. First, before you set off looking for a loan, make absolutely certain that your credit report and credit score are in order. Experts have advised that a significant majority of credit reports actually contain inaccurate negative information. Therefore, by making
Q. I have an OSAP loan. The interest payments are variable and I want to switch to a fixed rate. Does anyone know how to switch the loan to a fixed rate? I would switch creditors if I could maintain the tax benefits of the OSAP loan or if the total cost of the OSAP loan is higher then the terms offered by the new creditor.
Asked by Mike R - Sat May 17 12:36:36 2008 - - 1 Answers - 0 Comments
A. First, before you set off looking for a loan, make absolutely certain that your credit report and credit score are in order. Experts have advised that a significant majority of credit reports actually contain inaccurate negative information. Therefore, by making
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Wisconsin State Journal "If that condo association can offer fixed - rate financing, that's huge," Ferraro said. "That helps to preserve the values of that development and it helps ...
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CNBC's Louisa Bojesen is joined by Steve Barrow, chief currency strategist at Bear Stearns, and Cyril Beuzit, head of interest rate strategist ... cnbc.com.
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A . fixed rate. home equity loan is a great way of freeing extra cash which you can use for a variety of purposes including debt consolidation, wealth creation through good sound investment of capital, education, home improvement etc. ...
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