The FED & Bernanke are doing their best to keep these long term rates low while all these loans adjust. Remember $1.4 Trillion are adjusting this year and they are expecting 400 billion to go into Foreclosure in the next 12 months – NOT IF THEY KEEP LONG TERM RATES LOW.
So if your loan adjusts next year & you & your brain are wondering where rates might go, then you just might want to lock in now. There is plenty of data with CPI being 4.3% (out of the Fed's comfort zone of 3-4% annual growth) and the recent strong PPI #'s we have until the end of this year to get out of these adjustables is my guess (next year it wont matter as much as this year because not as many loans will be adjusting next year) - However, the problem could be just as big next year if we have infationary problems & rates go higher and a higher percentage of loans go into Foreclosure causing the number to come close to this year’s foreclosure numbers. It is very possible with Inflationary concerns & rates adjusting higher because of that, we could see Foreclosure numbers be as bad as this year. DO IT NOW -- lock in your rate into a 30 year fixed before values drop & rates go higher! Call us for a free loan cost analysis on the different loan options that best serve you! Call a home loan advisor at (800) 811-7709.
FRM is always better the ARM as inflation is gonna be a major concern I don't think that interest on ARM will go down next year. I always advice my friends for a fixed rate mortgage as it is you can save more money compared to adjustable rate mortgage.
John
http://www.perfectmortgagelender.com/
Posted by: John | March 18, 2008 at 11:15 PM