Fixed Rate Mortgages – Past, Present and Current Market Status

Mortgage loans and fixed rate mortgage history:

The fixed rate mortgage can be understood as a type of mortgage for which the interest rate has been “fixed”, or made “constant”, for the entire length of the mortgage term. Simply, it a mortgage loan with a constant interest rate, which does not change over the entire tenure of the loan. Mortgage loans are traditional types of loans, and have been in existence since centuries. In the past, moneylenders and “lords” (Europe 16th to 18th century) offered home mortgage loans to “needy” people, often the pheasants and laborers.

However, the middle class families too “borrowed” money to satisfy their financial needs, and later repaid the amount. In such cases, the lender generally decided the “final” fixed interest mortgage rate to be charged for the credit amount lent. The rate of interest was more or less standard, and did not change, but it was at the discretion of the moneylender to “decide” and “fix” the net chargeable home mortgage loan amount, since there was no “controlling authority” which “decided” which moneylender should charge what interest rate, and what kind of benefits the debtors should avail from the creditor, apart from the “loan” facility.

So, to summarize the mortgage loans scenario of the past, the loan procedure and working was not “standardized” or streamlined. There was little or no authority to question the creditor about “fair practice” or “ethical trade” related issues. The rule was quite simple. The moneylender was rich and had surplus money, and was ready to offer some amount at a particular rate of interest. It was for the borrower to decide how badly the credit facility was needed, and whether it was possible to accept the terms and conditions. If “yes”, the lender would give the money, and the borrower repaid the home mortgage loan rate amount as per convenience.

Mortgage and fixed rate mortgage status now:

Things are different now. Democracies and republics play the part of deciding how fixed interest mortgage rate and credit finances should be lent, and recovered. And since the governments are composed of “common people”, financial market has been greatly influenced by how creditors should lend their money, and what kind of protection the debtor should have while paying back the money borrowed. There are regulations in place, along with checks and counter checks, which balance the market economy, and ascertain that creditors do not “harass” their debtors, and also help the lenders to recover their capital in case the debtors fail to redeem. It has to be a two way street, a path which can be used by both the creditor as well as the debtor, in a harmonious manner.

Mortgage and fixed rate mortgage current market conditions:

As far as the current mortgage indices are concerned, mortgage rates are indicating yet another strong move higher this week. This is owing to the focus amongst bond investors, who have strong concerns regarding the budget deficits and inflation. Even with the prevailing market conditions, mortgage rates still remain well below the 6 percent mark. The rates do not pose an impediment to deserving borrowers. The Federal Reserve currently has a $1 trillion deficit in terms of outstanding mortgage payments, and if this deficit is catered to, it is possible to bring the mortgage rates down.

No further announcements are likely to take place before June, this year, by the “Federal Open Market Committee” meeting. Mortgage rates sharply increased last week, indicating that the average 30-year fixed mortgage rate increased up to 5.65 percent. As per the national survey, the average 30-year fixed mortgage is associated with an average of 0.44 discounts, as compared to its origination points. The average 15-year fixed rate mortgage rose to 5.06 percent, and the average jumbo 30-year fixed rate rebounded back to 6.68 percent.

As far as the average adjustable rate mortgages are concerned, the rate decreased to 5.01 percent while the 5-year ARM jumped to 5.20 percent. Everything said and done, the mortgage rates still remain significantly lower as compared to what they were a year ago. At this time last year, the average 30-year fixed mortgage rate was availed at 6.52 percent, indicating that a $200,000 loan would ideally carry a monthly payment of $1,266.77. With the average rate remaining stable at 5.65 percent, the monthly payment for the same loan amount would be $1,154.47, suggesting a savings of $112. 30 per month.

Reduce Your Credit Card Debts With Credit Card Debt Settlement

In our present situation, our economy is facing a tough time. Though it might come as a surprise, but the reality is that, this condition does not shock people anymore. This is not breaking news or making the headlines. You may ask, why? Well, for starters; debts are the reason why our economy strives, which we individuals benefit from. Consumers are very much accustomed to being in debt to the point of shunning away the responsibility of paying them.

Why do people have debts?

For starters, let us identify why we obtain debts; not just one or two debts but multitude debts. As time went by, generation after generation progressed and are continuously advancing towards a very innovative industry – both economically and financially.

Business corporations, advertisements and all sources of media had put up an impression on most of us. There are a lot of dictations on what is acceptable, what’s not acceptable, what we think is best for someone else. Pressure can be felt everywhere we go and from each person we mingle with.

In addition to the pressure, unexpected occurrences also add up to the many factors why we acquire debts; from inevitable changes in our economy (e.g. recession, retrenchments, bankruptcy, etc.) to unexpected happenings to our plain lack of ability to control our spending routine.

Researchers have also concluded that aside from natural occurrences, one of the main reasons why consumers accumulate debts is due to the fact that we never get satisfied with what we already have; we covet more and more things even though we do not have the capability to buy – resulting to debt increments. Whenever we gain a lot of credits, the harder it is to get out of the situation, making it really complicated to resolve.

Introduction of Debt Help Techniques

There are a lot of secrets to overcome one’s debts; secrets which can help you accomplish a debt-free life. However, the sad part is that we really do not have much idea what they are. Any person with debt has some alternatives, but not all of us know how to discern and take advantage of such alternatives.

Debt help techniques are present for our use. These techniques come in all forms, each with its own strategy and services to offer. The key to finding out which debt help technique can help you the most is to make out some possible cause and effect we can get from each method.

The Debt Settlement Method

One of the various types of debt help is known as debt settlement. A debt settlement method is done by undertaking a process of negotiation between debtor and creditor. Through this negotiation, they will more likely come up with a resolution that is agreeable to both parties. With the help of this method, debtors will be able to obtain a reduced total amount of existing debt which he/she only has to pay once every month, given that it be repaid on or before the stipulated date.

Credit Card Debt Settlement – A Debt Settlement Program

For people dealing with huge amounts of debt, they can either opt to do a personal debt settlement or go for the aid of a debt settlement program.

It is understandable that credit cards have become a “basic necessity” to an individual’s life since times are tough and credit cards can give us instant gratification whenever we want it, regardless of the time and the situation we are in.

Credit card debt settlement is a service offered by debt settlement with a main objective of giving some leverage and relief to debtors suffering major debt crisis. That is why people having insurmountable credit card debt seek support through credit card debt settlement.

It is known to be the fastest and most efficient way of clearing out credit card bills. What’s great about credit card debt settlement is that interest rates can go down as low as 50-70% off your previous rate.

How does it work?

Everyone is granted a credit card debt settlement service when they really need one. When you are under this program, some, if not, most creditors agree to write off as much as 30-50% of your total debts. It can even go higher, depending on your creditor’s decision. All it takes is a formal agreement between you and your respective creditor.

Work Out What You Can Afford With an Auto Loan Interest Calculator

Before you even think about buying a car, you need to think about how you are going to finance this expensive purchase. Most people are not lucky enough to be able to buy their cars outright, thus take out car financing either through the dealership, a bank, a credit union, a building society, or a specialist e-lender. When you work out what you can afford to pay each month, you will know what kind of car you are able to buy. An auto loan interest calculator takes the hard work out of figuring out just what that amount is, and are available on a number of websites. All you have to do is enter your financial details into the online calculator and it will bring up the figure you can afford – it really is that easy!

Most comparison sites and the websites of the e-lenders themselves offer an auto loan interest calculator so the first thing to do is to visit one of those sites. Each one is slightly different but the following example is fairly typical. Firstly, you will have to enter the price of the car. Even if you don’t know what car you want, you should know roughly the amount that you are willing to spend on your car. The next step on the auto loan interest calculator is to enter the amount that you can put down as a down payment. You don’t necessarily need a down payment and you can leave this section blank but do bear in mind that some lenders won’t approve you if you have no money to put down at all, and you are more likely to be offered a lower interest rate if you make a down payment. Any money you offer is collateral, meaning you will be perceived as less of a risk, and therefore a more favourable loan candidate.

The auto loan interest calculator will then require you to enter in the length of the term you would prefer. You can work this out from the amount of money you can realistically afford to pay each month. If you only have a small amount, you are looking at a longer term to give you the time to pay it all off. If you are able to afford to pay a reasonable amount each month, you may want a shorter term so that you end up paying less in interest over the course of the loan and of course, own it fully in a shorter length of time. Next, the auto loan interest calculator needs the interest rate of the loan – generally, if you have good credit it will be around 6% and if your credit rating is low it may be 10%. Remember, this is just an estimate so that you can work out roughly what you can afford so don’t worry too much about getting the figures spot-on. The amount you are financing will need to be entered into the auto loan interest calculator next – remember to take into consideration any down payment you will be making. Once all that information has been entered into the auto loan interest calculator, simply press ‘calculate’ and your monthly auto payment will be revealed.

An auto loan interest calculator can be a valuable tool when working out just what you can afford when you come to buy a car. Simply log onto the Internet and you will find many sites offering this service.