MYBLOGEMPIRETOUCH.COM: Where are interest rates going?

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Where are interest rates going?

Where are interest rates going? What kind of an interest rate did you get when refinancing your home? These are all questions that we ask but not everyone is satisfied with what they are hearing.

An interest rate is the price a borrower pays for the use of money they borrow from a lender. For instance, you want to buy something and you don't have enough money so you (borrow) get the money from a bank to buy what you want. The bank then lends you the money (gives it to you for a certain amount of time) and you pay it back on a monthly basis with a payment that you can afford. So the bank puts an interest rate on this loan and expects you to pay back all the money borrowed plus the amount that the interest rate added to the actual money borrowed. Interest rate is the percentage of money that you will need to repay. In some cases when the interest rate is too high it will cost you double to get it paid back.

You should always ask for an amortization chart which will show you the amount being borrowed, the interest rate, and the scheduled payments. At the end it will show you the total amount you will pay by the time the debt is paid back. Each month will tell you how much is going to the principal and how much is going to pay for the interest. Most interest is paid first and very little goes to the principal. Watch what you are getting into before you sign papers.

Now that you know what an interest rate is, lets look at what our financial department with the government is saying. On at least two occasions in the past month, Fed Chief Ben Bernanke has confirmed that he's going to keep interest rates as low as possible, for as long as possible, even indicating that there may be no rate hike until late 2011.

If you are contemplating on refinancing or modifying your home mortgage to get this low interest rate, I can help you with this. Click on this link: www.empiremortgagecolorado.com or go to www.affordable-home-refinance.com and we can help you. Easy online application will get you started fast. We do loans all over the United States.

Posted by Empiretouch at 5/14/2010 12:21 PM