| Mortgage Rates Increasing? |
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Eric80
Full Member
Cash: $ 17.25
Posts: 86
Joined: 28 Jun 2010
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| Mortgage Rates Increasing? |
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The original post was with regards to interest rates. I understand your situation though coaster. It becomes more and more risky extending your borrowing and therefore regardless of credit scoring if anything was to happen and you could not make the payments back, the bank loses it money hence the loop with regardless to the providers risk lending policy.
Freeze your interest with an IVA (Individual Voluntary Arrangement)
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Sat Aug 20, 2011 1:36 pm |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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| Re: Mortgage Rates Increasing? |
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Sorry I wasn't clear. I was responding to this:
quote:
Originally posted by Eric80
It is a fiscal policy for the economy to keep them low for the moment as it is an incentive for business to start up, with the idea that companies can borrow at low rate they will be an increase in start up and create jobs.
Low interest rates aren't effective as an economic stimulus if lenders won't lend. If lenders won't lend, the economy will remain slack. If the economy remains slack, interest rates will remain low. Let's assume lenders are a whole lot smarter about the direction of interest rates than we are because that's how they make a profit. It appears they're pretty confident rates are going to remain low for some time.
~Tim~
Eye Candy : Why Whimsy
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Sat Aug 20, 2011 4:24 pm |
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