Does my mortgage rate go down if interest rates are cut?
Mortgage
STARYDYNAMO asked:
Sorry to ask the shocking stupid question! I am coming to the end of my mortgage term ( end of September) and am wandering if the mortgage rates will go down (currently for at 6.99%). Do you think it will go down by this time? I am in the UK.
Bradley
Sorry to ask the shocking stupid question! I am coming to the end of my mortgage term ( end of September) and am wandering if the mortgage rates will go down (currently for at 6.99%). Do you think it will go down by this time? I am in the UK.
Bradley
May 25th, 2009 at 9:07 am
Ethel
I’m looking at getting a new mortgage in september. My advisor told me they had gone down .1% in the last few months they are likely to fall again. The cheapest I can find at the mo is 6.5% - first direct.
May 27th, 2009 at 12:59 pm
Amanda
In the US, only if it’s an adjustable rate mortgage (ARM). It jumps from some ridiculously low rate up 4 or 5 points. People are losing their houses, they can’t afford the new payments.
Glad I got my 20-year fixed.
May 28th, 2009 at 11:00 am
Harry
Get your mortgage, and see how the mortgage rate will be based. For example, if it is LIBOR, plus a margin, then calculate what it would be today. You can also call your current lender, and ask them what the anticipated rate is. Rates are not expected to increase between now and September.
If the rate is going to increase, then I suggest that you begin the process of applying for a fixed mortgage. You can settle when the new mortgage rate was scheduled to begin. To give you an idea fo what to look for, our rates for 30 year fixed are now about 6.375%. I do not do loans in UK, so do not think this is a solicitation to apply with me. Good luck!
May 28th, 2009 at 6:30 pm
Kimberly
Yes they might do. They definitely will not go up. If I knew the definitive answer I could make a lot of money!
Basically the UK economy is showing negative growth and although inflation his running high (5%) the BoE could reduce rates to stimulate the economy. If they raised rates it would have a disastrous effect.
May 29th, 2009 at 6:19 pm
Nicole
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May 31st, 2009 at 4:20 pm
Gladys
If your rate was artificially low, it will go up even if rates in general go down. Otherwise it will follow the market. /