What’s your interest rate?.Interest rates are at a multi-year, if not multi-decade low. Short bonds and lock up mortgages long term.
That I’m earning?
No, on your house. Do you have a mortgage?
Oh, yes, we refinanced.
Oh, perfect. When?
About 5%. A couple of months ago.
Good time.
Yes.
We had to do it because we had an adjustable rate mortgage and it exploded, so we had to.
So, did you get a fixed rate at 5%? I think this might be the most valuable piece of information. (Laughter.)
Thirty years fixed rate at a little over 5%
Wednesday, December 16, 2009
Bernanke Locks in Current Rate on His Personal Mortgage
If you have been delaying on refinancing your mortgage, maybe this will put a firecracker under you. From an interview with Fed Chairman Ben Bernanke conducted by TIME magazine:
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"We had to do it because we had an adjustable rate mortgage and it exploded, so we had to."
ReplyDeleteOf course, he doesn't see the irony of his actions when him and his predecessor's policies are what led to the explosion in the first place. An important thing to consider is that the average homeowner's options are limited because they are very underwater and do not have the benefit of being a very well paid central bank hack.
The interview is why I try to never read Time Magazine. It's complete garbage full of errors, asks no penetrating questions, and gives out meaningless awards to people that should get scorned instead.