Posted by george on March 20, 2006 at 12:39:05:
Kevin,
The fixed rate loan doesn’t rise. The quote is simply awkwardly worded.
What he intends to say is that if you wait until that interest rate occurs to secure your loan, this higher amount will be your payment.
george
please explain this quote - Posted by Kevin
Posted by Kevin on March 20, 2006 at 10:28:40:
Would someone please explain the following quote I read in a newsletter from realestate.com
“…if you closed on a $219,400.00, 30-year fixed rate loan at 6.03%, your payment would be $1320. If the interest rate rises to 6.5%, that monthly payment jumps to $1387.”
Why would your fixed rate loan rise?
Kevin
Re: please explain this quote - Posted by Rich
Posted by Rich on March 21, 2006 at 15:27:56:
I got this in their e-mail and it is a stupid staement to make. If you have a fixed rate, then the rate does not change. This can only apply to a loan where the interest rate adjusts. Like an ARM.
In fact I have a 4.625% fixed on my primary residence and in all the upward movement of rates, our payment has not changed a dime. Our HELOC, however (they’re all variable rate) changes with every interest rate increase.