| Seattle Investor Group Calm as Markets Swing
It certainly could be. Thirty-year fixed-rate mortgages have been dropping since Christmas. The average is now 5.5 percent, quite low by historical standards. So if you have an adjustable rate mortgage that's going to reset, now could be an excellent to time to swap into a fixed-rate loan. Lending standards have changed since the "anything goes" days of the housing bubble that burst last fall. "Here's why," says Greg McBride, senior financial analyst with bankrate.com, a personal finance Web site. "There are actually standards now. Instead of the loan requirement being the ability to fog a mirror, the people now in the best position to get mortgages have good credit, proof of income and either money for a down payment or equity in an existing house." Lower interest rates will take some of the sting out of adjustable rate loans that are resetting higher.
CUA axes variable loan sales by brokers
AUSTRALIA'S largest credit union is the latest credit crunch victim, suspending sales of all its variable home loans through brokers. Credit Union Australia has told brokers the sales would stop from today, although it would continue to sell the loans through its branch network. "As a result of recent events in financial markets and following a review of CUA's broker distribution model, CUA will temporarily withdraw its variable interest rate product range from this Friday," the credit union said in a note to brokers. CUA is also by far Australia's largest mutual society, with 388,000 members and $6.6 billion in assets. CUA merged last year with the Australian National Credit Union to form the new entity. It was named credit union of the year this year by Money magazine.
Don't Get Bitten By Zero Percent Interest
Your credit cards are close to their limit and your minimum payments are barely covering your interest rate. You open the mailbox and see a light at the end of the tunnel. A new creditor is offering you the chance to take all of that debt, put it on one card and pay no interest. It seems like heaven. But some experts say low or no interest offers can carry some negative consequences if consumers dont know what they are getting into. .
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