Interest Rates, where will they stop?
Jun 1st 2010, 11:15 am
#121
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Re: Interest Rates, where will they stop?
“Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”
2/15/06 – Ben Bernanke - Hearing before the Committee on Financial Services
Sorry but this is getting spooky...
Jun 1st 2010, 11:23 am
#122
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Re: Interest Rates, where will they stop?
Just need the exchange rate to vastly improve in favour of the £.
Jun 1st 2010, 11:25 am
#123
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Re: Interest Rates, where will they stop?
its up four cents today;dollar weakenning across the board
Jun 1st 2010, 11:28 am
#124
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Jun 1st 2010, 11:37 am
#125
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Re: Interest Rates, where will they stop?
Given that Japan has published some excellent manufacturing figures recently this suggests that the markets are extremely nervous--given that the yen rate is a good bellweather figure.Something dramatic is in the offing.Any comments anyone???
Jun 1st 2010, 11:56 am
#126
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Re: Interest Rates, where will they stop?
Jun 1st 2010, 10:52 pm
#127
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Re: Interest Rates, where will they stop?
just hoping someone can help, what qualifications do I need to become an armchair expert in interest rates, equities, etc?
Jun 2nd 2010, 12:01 am
#130
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Re: Interest Rates, where will they stop?
And tbf this thread is about opionions on the future direction of interest rates.
Last edited by freebo; Jun 2nd 2010 at 12:03 am.
Jun 2nd 2010, 12:33 am
#132
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Re: Interest Rates, where will they stop?
Jun 5th 2010, 4:55 am
#133
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Re: Interest Rates, where will they stop?
In my view, interest rates are only the 4th most important factor in determining the cost of a homeloan.
It unfortunate however that the banks have got most of their customers tied over a barrel with their 30 year home loans thinking that the rate is the only thing that matters. That's obviously how they make their money though!
The term of loan is by far more imortant. For example, I can increase the interest rate by 50% and still pay less...
$100,000 @ 2% over 20 years = $40,000 total interest paid
$100,000 @ 3% over 10 years = $30,000 total interest paid.
Instead of looking at rate, people should be looking at what structure they can put in place to reduce the term of loan. That way, rates can pretty much do what they like.
There are a few excellent products on the market that allow you to use your income more effectively in reducing the daily value of your capital balance - thus reducing your interest charge.
It unfortunate however that the banks have got most of their customers tied over a barrel with their 30 year home loans thinking that the rate is the only thing that matters. That's obviously how they make their money though!
The term of loan is by far more imortant. For example, I can increase the interest rate by 50% and still pay less...
$100,000 @ 2% over 20 years = $40,000 total interest paid
$100,000 @ 3% over 10 years = $30,000 total interest paid.
Instead of looking at rate, people should be looking at what structure they can put in place to reduce the term of loan. That way, rates can pretty much do what they like.
There are a few excellent products on the market that allow you to use your income more effectively in reducing the daily value of your capital balance - thus reducing your interest charge.
Jun 5th 2010, 5:40 am
#134
Guest
Posts: n/a
Re: Interest Rates, where will they stop?
In my view, interest rates are only the 4th most important factor in determining the cost of a homeloan.
It unfortunate however that the banks have got most of their customers tied over a barrel with their 30 year home loans thinking that the rate is the only thing that matters. That's obviously how they make their money though!
The term of loan is by far more imortant. For example, I can increase the interest rate by 50% and still pay less...
$100,000 @ 2% over 20 years = $40,000 total interest paid
$100,000 @ 3% over 10 years = $30,000 total interest paid.
Instead of looking at rate, people should be looking at what structure they can put in place to reduce the term of loan. That way, rates can pretty much do what they like.
There are a few excellent products on the market that allow you to use your income more effectively in reducing the daily value of your capital balance - thus reducing your interest charge.
It unfortunate however that the banks have got most of their customers tied over a barrel with their 30 year home loans thinking that the rate is the only thing that matters. That's obviously how they make their money though!
The term of loan is by far more imortant. For example, I can increase the interest rate by 50% and still pay less...
$100,000 @ 2% over 20 years = $40,000 total interest paid
$100,000 @ 3% over 10 years = $30,000 total interest paid.
Instead of looking at rate, people should be looking at what structure they can put in place to reduce the term of loan. That way, rates can pretty much do what they like.
There are a few excellent products on the market that allow you to use your income more effectively in reducing the daily value of your capital balance - thus reducing your interest charge.
$250,000 @ 6% over 20 years = $179,859 total interest paid, at $1,791pm
$250,000 @ 9% over 10 years = $130,026 total interest paid, but at $3,166 pm
$250,000 @ 9% over 10 years = $130,026 total interest paid, but at $3,166 pm
$250,000 @ 6% over 10 years = $83,061 total interest paid, at $2,776pm
Jun 5th 2010, 6:09 am
#135
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Posts: 493
Re: Interest Rates, where will they stop?
Like I said, it all comes down to having the right products in place. There are products that don't have repayments. Any good broker should be able to do this for you.