Roulette
Posted on May 1, 2008 - Filed Under Business |
The Fed cut the rate. Again.
Common thread seen repeatedly in articles is the rate cut doesn’t affect home mortgages. While this may be true, one rate that is cut: HELOC’s.
Since good ol’ Ben decided to hacked the interest rate like a Chainsaw Massacre, it was time to gamble. Four months ago, the decision was made to let my HELOC’s go variable instead of fixed. Each time a bloody chunk was removed from the interest rate, my HELOC dropped.
This has resulted in my expenses decreasing roughly $500 per month.
It was a gamble. Ol’ Ben could have jumped up one day and said “Surprise surprise surprise! Rates are going up 4 points today!”
But I couldn’t see that happening.
Made a few phone calls and my locked interest rate became variable.
Ol’ Ben has signaled this is the end of the rate cuts. My Real Estate Agent and I are guessing the long standing tradition of the Fed to leave interest rates alone prior to a Presidential election cycle. We predicted this would take place in June. But Barron’s disagreed this last week. True to form, Ol’ Ben cut it again.
All good things however must come to an end.
At some point, the interest rate will start its trek uphill. The guess will be “when”. At that point, my rate will go from variable to locked.
When? Probably after November’s election and all the resulting lawsuits have been resolved.
If you liked that post, then try these...
Looking Successful on March 20th, 2008
We've all gone for an interview.
Cheese Placement on November 3rd, 2006
In kindergarten, we did lots of creative stuff as well as eat paste.
Comments
Leave a Reply
