Look for interest rate drops...NF in a way

[bigfish1965]

looking to make a big purchase soon?

Interest should be coming down quite soon. Infaltion has been localized to the west and once current stocks of US imports clear there are expected to be big drops in prices. In spite of record oil prices, gas has remained stable.

I just had a huge argument with my realtor about this,,,he said they were going up..I said no way..dollar is way over valued.

Todays Star indicates government in now pressing BofC to loswer rates by 1/2 pt or so. This should drop mortgage rates in the next few weeks since they tend to move before the Feds do.

The three things that affect interest rates are inflation, economic growth and gov't debt (ties back into the dollar). As long as inflation remains @ 2.5 to 2.7% they can drop rates.

 

Buy that boat this spring!!

[scuro]

Rates will only go down if US continues to lower rates. There is just too much inflation out west. As for buying the boat...I'd say fine as long as your not maxing out your credit to do so. Now is not the time to be holding a lot debt.

Edited October 27, 2007 by scuro

[OhioFisherman]

Don`t get caught up in the "gotta have it" crap a lot of people here do. A mortgage crisis of sorts, people buy a home no down payment two a.r.m. loans that are now resetting at a higher interest rate and they can`t afford the higher payment. Foreclosing on mortgage loans here at an increasing rate.

 

Gotta have it, and can I afford to keep it can be two different things. Expect the un-expected, and live with-in your means. Fed here is expected to lower interest rates at the next session, it won`t be enough to help some.

 

I only have 72 payments left on the ranch, mortgage balance is 2,000, and haven`t worked since 2003. Gotta have it, and can I keep it, was a roof over my families head. Stuff happens!

[TennesseeGuy]

Rule #1. Borrow money only on items that appreciate in value.

 

Make only 1 payment on a boat. 100% down and 0 monthly. Same with automobiles & trucks.

[Garyv]

Rick I totally agree the Canadian dollar is way overvalued. Somewhere some time soon something is going to give, perhaps earlier but for sure after the next US election. lets be realistic the Canadian as well as other dollars are not gaining ground against the US dollar for any other reason except the US dollar is loosing ground at a fantastic rate in part due to their economy and governmental spending. World credit, especially in North America, is at an all time high and let's say demand notes and these fantastic mortgage schemes start to be called the wheels will then be put in motion to possibly create financial chaos.

[OhioFisherman]

Gary the concern here is for a recession, it has already hit the home market. Property values dropping in some areas, some of it has to do with people over extending themselves and not being able to make payments when the a.r.m.s reset. Another part is some of the people that got loans would have never qualified for one 20 or 30 years ago.

 

A lot of the major players in the mortgage markets are reporting some serious losses. Speculation on fuel, the reasoning is oil should be selling for around 62 dollars a barrel based on the supply. USA spending, estimated 2 1/2 Trillion dollars, to fix the mess in the middle east.

 

Canadian dollar over valued? I don`t think your country has anywhere near the debt load we have, and ours just keeps going up.

[Guest skeeter99]

this is just one step towards the north america or americas union similar to the european union

 

 

single currency open trade

 

 

it is going to happen in the next 10 years so dont be suprised all my banker buddies say it is coming

[Kirk]

Carrot futures...big push on that as weather gets warmer LOL

 

TG's got the best advice (easy to remember and follow).

[bigfish1965]

There are times hwne borrowing over paying cash makes sense. Not often but it happens. If you can get a better rate of return on your cash by investing than over your depreciating asset purchase, take the ten thousand or so dollars and invest it and also get more pushy with your bank. I combined my two car loans into one and got such a rate reduction that the boat ended up being free. Work the banks and they will eventually come around.

Rule #1. Borrow money only on items that appreciate in value.

 

Make only 1 payment on a boat. 100% down and 0 monthly. Same with automobiles & trucks.

[irishfield]

Rule #1. Borrow money only on items that appreciate in value.

 

Make only 1 payment on a boat. 100% down and 0 monthly. Same with automobiles & trucks.

 

[seeking54]

If you're looking to a boat or any big ticket item and you have the equivalent in stocks (non registered) and you qualify for a line of credit, sell your stock, pay the item, and borrow from the line of credit to buy back the stock.

 

This makes your line of credit interest tax deductible.

 

Joe

[Blake]

I agree with Rick that rates will go down soon to control the dollar. Even when Dodge said that it was over valued as a verbal slip it dropped 1.5 cents prior to the opening of trade.

[tonyb]

Rule #1. Borrow money only on items that appreciate in value.

 

Make only 1 payment on a boat. 100% down and 0 monthly. Same with automobiles & trucks.

 

For sure...if you have that much money...not many people have $40K sitting in the bank for a vehicle purchase.

 

The best way to tell you are getting soaked (even if they say it's 0% financing) is to look at the Cash purchase price versus financing. It is usually several thousand dollars cheaper paying by cash. So the cost of borrowing is already built into the price when you think you are getting it financed for 0% it is more like 4 to 5%...

 

Tony