Comments for CMC Group's Weblog http://cmcgroup.wordpress.com Just another WordPress.com weblog Thu, 19 Jun 2008 08:30:44 +0000 http://wordpress.com/ hourly 1 Comment on Another opportunity to learn about positive cash flow investing in affordable parts of the US by Congestive http://cmcgroup.wordpress.com/2008/04/21/another-opportunity-to-learn-about-positive-cash-flow-investing-in-affordable-parts-of-the-us/#comment-192 Congestive Thu, 19 Jun 2008 08:30:44 +0000 http://cmcgroup.wordpress.com/?p=124#comment-192 Somehow i missed the point. Probably lost in translation :) Anyway ... nice blog to visit. cheers, Congestive. Somehow i missed the point. Probably lost in translation :) Anyway … nice blog to visit.

cheers, Congestive.

]]> Comment on Another opportunity to learn about positive cash flow investing in affordable parts of the US by cmcgroup http://cmcgroup.wordpress.com/2008/04/21/another-opportunity-to-learn-about-positive-cash-flow-investing-in-affordable-parts-of-the-us/#comment-191 cmcgroup Tue, 17 Jun 2008 17:45:15 +0000 http://cmcgroup.wordpress.com/?p=124#comment-191 Thanks for the tip. Thanks for the tip.

]]> Comment on If you’re attracted to higher interest rates on bank deposits and CD’s, you’ll love the HOA by Gmac Mortgage Residential http://cmcgroup.wordpress.com/2008/01/10/if-youre-attracted-to-higher-interest-rates-on-bank-deposits-and-cds-youll-love-the-hoa/#comment-181 Gmac Mortgage Residential Tue, 06 May 2008 00:04:23 +0000 http://cmcgroup.wordpress.com/2008/01/10/if-youre-attracted-to-higher-interest-rates-on-bank-deposits-and-cds-youll-love-the-hoa/#comment-181 <strong>Gmac Mortgage Residential...</strong> This is why I like a messy desk, "If a cluttered desk is an indication... Gmac Mortgage Residential…

This is why I like a messy desk, “If a cluttered desk is an indication…

]]> Comment on Another opportunity to learn about positive cash flow investing in affordable parts of the US by Denton Ward http://cmcgroup.wordpress.com/2008/04/21/another-opportunity-to-learn-about-positive-cash-flow-investing-in-affordable-parts-of-the-us/#comment-180 Denton Ward Fri, 02 May 2008 22:05:52 +0000 http://cmcgroup.wordpress.com/?p=124#comment-180 There are many parts of the nation where you can still cash flow with only 10% down. Take a look at http://www.erealtyinvestors.com for some of those properties. 20% down makes sense sometimes, but finding better areas to invest eliminates having to put down more capital, therefore maximizing returns (although getting less cash flow). I guess it depends on what the consumer wants, cash flow or return, or tax benefits??? There are many parts of the nation where you can still cash flow with only 10% down. Take a look at http://www.erealtyinvestors.com for some of those properties. 20% down makes sense sometimes, but finding better areas to invest eliminates having to put down more capital, therefore maximizing returns (although getting less cash flow). I guess it depends on what the consumer wants, cash flow or return, or tax benefits???

]]> Comment on The more rates come down the more rates stay the same by softwarenerd http://cmcgroup.wordpress.com/2008/02/28/the-more-rates-come-down-the-more-rates-stay-the-same/#comment-176 softwarenerd Wed, 09 Apr 2008 19:12:54 +0000 http://cmcgroup.wordpress.com/?p=111#comment-176 The conforming mortgage rates in that graphic actually do decline slightly, except near the end (Jan, Feb). The Fed rate tends to lag the long-term rates. You can see this in the graphic, where the conforming mortgage rate starts to decline, partly reflecting the decline in long-term US treasury rates. The Fed finally lowers its short-term rate. In other words, contrary to what some think, the Fed short term rate is a reaction rather than a cause. As you rightly point out, the long term rates are not a primary cause. The real mover is expectation about the economy. Those expectations, and their realization, also causes the Fed to act. So, the Fed rate and the long term rate are correlated, since they are caused by similar underlying phenomena. The Fed rate tends to be more "jumpy" because it is a fiat rate rather than a market-set rate. The conforming mortgage rates in that graphic actually do decline slightly, except near the end (Jan, Feb).

The Fed rate tends to lag the long-term rates. You can see this in the graphic, where the conforming mortgage rate starts to decline, partly reflecting the decline in long-term US treasury rates. The Fed finally lowers its short-term rate.

In other words, contrary to what some think, the Fed short term rate is a reaction rather than a cause.

As you rightly point out, the long term rates are not a primary cause. The real mover is expectation about the economy. Those expectations, and their realization, also causes the Fed to act. So, the Fed rate and the long term rate are correlated, since they are caused by similar underlying phenomena.

The Fed rate tends to be more “jumpy” because it is a fiat rate rather than a market-set rate.

]]> Comment on Video message from Chosen Cheng introducing this mortgage blog by cmcgroup http://cmcgroup.wordpress.com/2008/02/06/video-message-from-chosen-cheng-introducing-this-mortgage-blog/#comment-173 cmcgroup Wed, 26 Mar 2008 01:15:26 +0000 http://cmcgroup.wordpress.com/?p=90#comment-173 Junab, Good question. I posted an entry in my blog on this subject after the January FED rate drop. But basically, the long term mortgage rates are more susceptible to the perception of cost of money on the long term bond market than short term overnight cost of borrowing money from the FED or between FED member banks. The FED funds rate is aimed at making sure there is enough money in the financial system to enhance liquidity of the financial markets and is not directly influencing long term mortgage interest rates. Naturally since the relationship between the FED funds rate and the prime rate is generally locked in at Prime= FFR + 3% and some long term mortgage loans are based on Prime as an index and since most variable rate loans are based on the Bank of England's 1 month Libor rate and Libor tends to track the FFR after 30-60 days, you will see an effect of moving the FED funds rate down on the interest rates of variable mortgages. But the 30 year fixed rate is stubbornly high and a symptom of pessimism in the economy. Banks are concerned about their profit margins these days even more so than normal since they have had to write off so many billions of dollars of bad loans in the wake of the subprime and foreclosure bust. So they are raising their lending standards and raising their rates and their fees. The Jumbo limit will be raised by Mayish. The industry still has to work out how to price the loans and how to determine who is eligible. Here is an article. http://calculatedrisk.blogspot.com/2008/03/jumbo-conforming-loan-guidelines.html Are you sure that refinancing to a low fixed rate is the best way for you to go? The fixed rates may not go down as much as you are hoping. I have found that if a homeowner is in pretty good financial shape and has about 10% net pay extra per paycheck that can be saved or invested, it makes sense for that homeowner to refinance into the Home Ownership Accelerator product from CMG and GMAC bank. The result is that you earn a higher rate on your surplus cash than keeping it in the bank or buying CD's AND you pay off the loan very fast and save hundreds of thousands of dollars of interest expense. I have blogged about this loan on my blog as well. Do a search for HOA. Here is a website with benefits and testimonials. www.cmghome.com Let me know if I can be of help to answer any other questions you may have. Call anytime on my cell phone. Best regards, Chosen Cheng 408 802-0658 Junab,
Good question. I posted an entry in my blog on this subject after the January FED rate drop. But basically, the long term mortgage rates are more susceptible to the perception of cost of money on the long term bond market than short term overnight cost of borrowing money from the FED or between FED member banks. The FED funds rate is aimed at making sure there is enough money in the financial system to enhance liquidity of the financial markets and is not directly influencing long term mortgage interest rates. Naturally since the relationship between the FED funds rate and the prime rate is generally locked in at Prime= FFR + 3% and some long term mortgage loans are based on Prime as an index and since most variable rate loans are based on the Bank of England’s 1 month Libor rate and Libor tends to track the FFR after 30-60 days, you will see an effect of moving the FED funds rate down on the interest rates of variable mortgages. But the 30 year fixed rate is stubbornly high and a symptom of pessimism in the economy. Banks are concerned about their profit margins these days even more so than normal since they have had to write off so many billions of dollars of bad loans in the wake of the subprime and foreclosure bust. So they are raising their lending standards and raising their rates and their fees.
The Jumbo limit will be raised by Mayish. The industry still has to work out how to price the loans and how to determine who is eligible. Here is an article.
http://calculatedrisk.blogspot.com/2008/03/jumbo-conforming-loan-guidelines.html

Are you sure that refinancing to a low fixed rate is the best way for you to go? The fixed rates may not go down as much as you are hoping. I have found that if a homeowner is in pretty good financial shape and has about 10% net pay extra per paycheck that can be saved or invested, it makes sense for that homeowner to refinance into the Home Ownership Accelerator product from CMG and GMAC bank. The result is that you earn a higher rate on your surplus cash than keeping it in the bank or buying CD’s AND you pay off the loan very fast and save hundreds of thousands of dollars of interest expense. I have blogged about this loan on my blog as well. Do a search for HOA. Here is a website with benefits and testimonials.

http://www.cmghome.com

Let me know if I can be of help to answer any other questions you may have. Call anytime on my cell phone.
Best regards,
Chosen Cheng
408 802-0658

]]> Comment on Video message from Chosen Cheng introducing this mortgage blog by Junab Ali http://cmcgroup.wordpress.com/2008/02/06/video-message-from-chosen-cheng-introducing-this-mortgage-blog/#comment-172 Junab Ali Tue, 25 Mar 2008 22:07:36 +0000 http://cmcgroup.wordpress.com/?p=90#comment-172 Why aren't fixed mortgage rates falling as the Fed lowers its various rates? Have you heard when the jumbo limit will be raised from $417,000? I'm just above this amount and want to refinance to a low fixed rate. J. Ali Why aren’t fixed mortgage rates falling as the Fed lowers its various rates?

Have you heard when the jumbo limit will be raised from $417,000?
I’m just above this amount and want to refinance to a low fixed rate.

J. Ali

]]> Comment on 30 year fixed rate versus 1 month LIBOR vs FED funds rate by Scott http://cmcgroup.wordpress.com/2008/01/04/30-year-fixed-rate-versus-1-month-libor-vs-fed-funds-rate/#comment-170 Scott Fri, 21 Mar 2008 22:42:35 +0000 http://cmcgroup.wordpress.com/2008/01/04/30-year-fixed-rate-versus-1-month-libor-vs-fed-funds-rate/#comment-170 I have a 3 year libor adjustable rate loan that will mature on 4/2009. It adjusts every 6 months. With all the turmoil going on in the finanancial markets, where you do see the Libor 6-month rates a bout a year from now? I believe the current rate is 2.53 or so. Thank you for your help on this. I have a 3 year libor adjustable rate loan that will mature on 4/2009. It adjusts every 6 months. With all the turmoil going on in the finanancial markets, where you do see the Libor 6-month rates a bout a year from now? I believe the current rate is 2.53 or so. Thank you for your help on this.

]]> Comment on Solutions for refinancing in declining market by cmcgroup http://cmcgroup.wordpress.com/2008/01/15/solutions-for-refinancing-in-declining-market/#comment-167 cmcgroup Sat, 15 Mar 2008 03:28:25 +0000 http://cmcgroup.wordpress.com/2008/01/15/solutions-for-refinancing-in-declining-market/#comment-167 Brad, Thanks for posting to my blog: I have an adjustable mortgage and our appraisials have plumeted in this area so badly, I have no clue how to get a fixed rate. I paid off a second as Countrywide suggested but then my appraisal is not 20% of my loan. I put over 100,000.00 into this home and now cannot refinance, help? I see no way out and have tried to talk to Countrywide over and over and no help. You are correct, they would lose nothing if they refinanced 100% and now so many of us sit and can do nothing except watch negative balances occur and lose our life’s savings. Chosen's replies: Comment: I have an adjustable mortgage and our appraisials have plumeted in this area so badly, I have no clue how to get a fixed rate. Response: You are right that housing prices are declining in many parts of the country. But if you are planning on living in the home for some time and you can make the payments just be aware that the prices will come back up eventually. You're not really losing money by being in the home unless you are thinking like a renter where you can move anywhere to pay the lowest rent. If you are thinking like a home owner, you need to think long term and just make sure you can make the payments. Comment: I paid off a second as Countrywide suggested but then my appraisal is not 20% of my loan. Response: I presume Countrywide had offered the second? Lenders of seconds have been freezing lines of credit on seconds in order to minimize the possibility that homeowners who are under water with their homes, owing more than the home is currently worth, will walk away from the home and abandon paying the second and abandon paying the first. Only the first mortgage lender has a solid claim on the property. Lenders of seconds will be left high and dry. So by your paying off the second you did Countrywide a favor. I presume when you comment on your appraisal that you mean that your home appraisal is not 20% over the existing loan so you could get an 80% Loan to Value refinance. Yes, your current first mortgage might actually be higher than 80% LTV, perhaps even 90% LTV at this time. So you could not get a new loan on the property. Comments: I put over 100,000.00 into this home and now cannot refinance, help? I see no way out and have tried to talk to Countrywide over and over and no help. You are correct, they would lose nothing if they refinanced 100% and now so many of us sit and can do nothing except watch negative balances occur and lose our life’s savings. Response: By putting over $100,000 into the home, I presume you mean paying interest and principal on the home loans. That is good. Unfortunately the interest and principal paid in does not directly create market value of the home. That is based on market conditions. Countrywide must be looking at you as a stable borrower who will make good on the loan obligations. If Countrywide saw you as a borrower likely to default, perhaps it would treat you differently. But you certainly don't want to miss payments in order to send a signal to Countrywide. It's a tough situation for lenders and borrowers. Thinking about your situation, and combining some new ideas from investment groups I have been researching, I wonder if you are in a position to rent your home out and move into a different home on a rental basis. If the rental market in your area is strong, you may be able to get a decent rent. If you convert your residence to a rental you will be able to change the economics of the property even considering negative cash flow and depreciation. You should consult with a tax advisor and real estate investor about options. Best regards, Chosen Cheng 408 802-0658 Brad,
Thanks for posting to my blog:

I have an adjustable mortgage and our appraisials have plumeted in this area so badly, I have no clue how to get a fixed rate. I paid off a second as Countrywide suggested but then my appraisal is not 20% of my loan. I put over 100,000.00 into this home and now cannot refinance, help? I see no way out and have tried to talk to Countrywide over and over and no help. You are correct, they would lose nothing if they refinanced 100% and now so many of us sit and can do nothing except watch negative balances occur and lose our life’s savings.
Chosen’s replies:

Comment: I have an adjustable mortgage and our appraisials have plumeted in this area so badly, I have no clue how to get a fixed rate.
Response: You are right that housing prices are declining in many parts of the country. But if you are planning on living in the home for some time and you can make the payments just be aware that the prices will come back up eventually. You’re not really losing money by being in the home unless you are thinking like a renter where you can move anywhere to pay the lowest rent. If you are thinking like a home owner, you need to think long term and just make sure you can make the payments.

Comment: I paid off a second as Countrywide suggested but then my appraisal is not 20% of my loan.
Response: I presume Countrywide had offered the second? Lenders of seconds have been freezing lines of credit on seconds in order to minimize the possibility that homeowners who are under water with their homes, owing more than the home is currently worth, will walk away from the home and abandon paying the second and abandon paying the first. Only the first mortgage lender has a solid claim on the property. Lenders of seconds will be left high and dry. So by your paying off the second you did Countrywide a favor. I presume when you comment on your appraisal that you mean that your home appraisal is not 20% over the existing loan so you could get an 80% Loan to Value refinance. Yes, your current first mortgage might actually be higher than 80% LTV, perhaps even 90% LTV at this time. So you could not get a new loan on the property.

Comments: I put over 100,000.00 into this home and now cannot refinance, help? I see no way out and have tried to talk to Countrywide over and over and no help. You are correct, they would lose nothing if they refinanced 100% and now so many of us sit and can do nothing except watch negative balances occur and lose our life’s savings.
Response: By putting over $100,000 into the home, I presume you mean paying interest and principal on the home loans. That is good. Unfortunately the interest and principal paid in does not directly create market value of the home. That is based on market conditions. Countrywide must be looking at you as a stable borrower who will make good on the loan obligations. If Countrywide saw you as a borrower likely to default, perhaps it would treat you differently. But you certainly don’t want to miss payments in order to send a signal to Countrywide. It’s a tough situation for lenders and borrowers.

Thinking about your situation, and combining some new ideas from investment groups I have been researching, I wonder if you are in a position to rent your home out and move into a different home on a rental basis. If the rental market in your area is strong, you may be able to get a decent rent. If you convert your residence to a rental you will be able to change the economics of the property even considering negative cash flow and depreciation. You should consult with a tax advisor and real estate investor about options.

Best regards,
Chosen Cheng
408 802-0658

]]> Comment on Solutions for refinancing in declining market by Brad Kennedy http://cmcgroup.wordpress.com/2008/01/15/solutions-for-refinancing-in-declining-market/#comment-166 Brad Kennedy Fri, 14 Mar 2008 20:40:47 +0000 http://cmcgroup.wordpress.com/2008/01/15/solutions-for-refinancing-in-declining-market/#comment-166 I have an adjustable mortgage and our appraisials have plumeted in this area so badly, I have no clue how to get a fixed rate. I paid off a second as Countrywide suggested but then my appraisal is not 20% of my loan. I put over 100,000.00 into this home and now cannot refinance, help? I see no way out and have tried to talk to Countrywide over and over and no help. You are correct, they would lose nothing if they refinanced 100% and now so many of us sit and can do nothing except watch negative balances occur and lose our life's savings. I have an adjustable mortgage and our appraisials have plumeted in this area so badly, I have no clue how to get a fixed rate. I paid off a second as Countrywide suggested but then my appraisal is not 20% of my loan. I put over 100,000.00 into this home and now cannot refinance, help? I see no way out and have tried to talk to Countrywide over and over and no help. You are correct, they would lose nothing if they refinanced 100% and now so many of us sit and can do nothing except watch negative balances occur and lose our life’s savings.

]]> Comment on For well qualified homeowners with a savings habit, there are options to refinancing to a lower fixed rate loan by cmcgroup http://cmcgroup.wordpress.com/2008/02/12/for-well-qualified-homeowners-with-a-savings-habit-there-are-options-to-refinancing-to-a-lower-fixed-rate-loan/#comment-156 cmcgroup Tue, 26 Feb 2008 20:24:46 +0000 http://cmcgroup.wordpress.com/?p=95#comment-156 Philip, You put yor finger on one of the very best features of the HOA. It will not matter about short term rates dropping further in 2008. The HOA loan rate will drop right along with the 1 month Libor. At the beginning of each month a snapshot is taken of the 1 month Libor rate and that is the rate for the month. There is no fixed period where you feel you need to wait for optimal timing. You will benefit every month the rates are low. Of course, another great feature of the HOA is that the daily balance of your checking account reduces principal owed and so that means that over time as your savings habit of , say 10% net pay, accumulates funds in your checking account your principal owed will be reduced and your interest expense will be lower. Compared to the closed end fixed rate loan that we are all accustomed to paying the HOA results in MUCH LESS interest expense, potentially hundreds of thousands of dollars for an expensive California mortgage. The key is that the interest rate is much less important than the interest paid and the amount paid is much more in your control by managing your funds wisely with the HOA than just by picking a favorable interest rate on a conventional mortgage. Getting a fixed 30 year loan is like getting financing on autopilot. You just get used to paying an affordable amount and you end up unconsciously paying DOUBLE the face value of your mortgage. The HOA is for savvy homwowners who want control over the situation and who have plans for the hundreds of thousands of dollars saved. Philip,
You put yor finger on one of the very best features of the HOA. It will not matter about short term rates dropping further in 2008. The HOA loan rate will drop right along with the 1 month Libor. At the beginning of each month a snapshot is taken of the 1 month Libor rate and that is the rate for the month. There is no fixed period where you feel you need to wait for optimal timing. You will benefit every month the rates are low.

Of course, another great feature of the HOA is that the daily balance of your checking account reduces principal owed and so that means that over time as your savings habit of , say 10% net pay, accumulates funds in your checking account your principal owed will be reduced and your interest expense will be lower. Compared to the closed end fixed rate loan that we are all accustomed to paying the HOA results in MUCH LESS interest expense, potentially hundreds of thousands of dollars for an expensive California mortgage. The key is that the interest rate is much less important than the interest paid and the amount paid is much more in your control by managing your funds wisely with the HOA than just by picking a favorable interest rate on a conventional mortgage. Getting a fixed 30 year loan is like getting financing on autopilot. You just get used to paying an affordable amount and you end up unconsciously paying DOUBLE the face value of your mortgage. The HOA is for savvy homwowners who want control over the situation and who have plans for the hundreds of thousands of dollars saved.

]]> Comment on For well qualified homeowners with a savings habit, there are options to refinancing to a lower fixed rate loan by Philip http://cmcgroup.wordpress.com/2008/02/12/for-well-qualified-homeowners-with-a-savings-habit-there-are-options-to-refinancing-to-a-lower-fixed-rate-loan/#comment-155 Philip Tue, 26 Feb 2008 19:39:44 +0000 http://cmcgroup.wordpress.com/?p=95#comment-155 "Complimente" on the blog. I am seriously considering the HOA product from CMG. The biggest question at this point is timing. Given that the loan uses the 1-month LIBOR (WSJ) as its index, I believe there may be plenty of room left for the initial rate to drop. As your other posts have described, 1-month LIBOR and the Fed Fund rate are usually in sync, and despite inflation concerns, I believe the Fed will drop their rate another 50 bp in March. The HOA is a pretty good deal starting at 4%, but its a great deal at 2.5%! (capped at 7.5%) Thoughts on timing? “Complimente” on the blog. I am seriously considering the HOA product from CMG. The biggest question at this point is timing. Given that the loan uses the 1-month LIBOR (WSJ) as its index, I believe there may be plenty of room left for the initial rate to drop. As your other posts have described, 1-month LIBOR and the Fed Fund rate are usually in sync, and despite inflation concerns, I believe the Fed will drop their rate another 50 bp in March. The HOA is a pretty good deal starting at 4%, but its a great deal at 2.5%! (capped at 7.5%) Thoughts on timing?

]]> Comment on March 1-2 Investment Conference in Burlingame, CA by Personal Finance » Blog Archive » March 1-2 Investment Conference in Burlingame, CA http://cmcgroup.wordpress.com/2008/02/25/march-1-2-investment-conference-in-burlingame-ca/#comment-153 Personal Finance » Blog Archive » March 1-2 Investment Conference in Burlingame, CA Mon, 25 Feb 2008 22:31:16 +0000 http://cmcgroup.wordpress.com/2008/02/25/march-1-2-investment-conference-in-burlingame-ca/#comment-153 [...] Original post by CMC Group’s Weblog [...] [...] Original post by CMC Group’s Weblog [...]

]]> Comment on Make sure to read the fine print! by Loan Broker on The Finance World For News and Information Around The World On Finance » Make sure to read the fine print! http://cmcgroup.wordpress.com/2008/02/16/make-sure-to-read-the-fine-print/#comment-151 Loan Broker on The Finance World For News and Information Around The World On Finance » Make sure to read the fine print! Mon, 25 Feb 2008 02:03:11 +0000 http://cmcgroup.wordpress.com/?p=104#comment-151 [...] Make sure to read the fine print! So I would venture to say that 99% of loan papers are signed mechanically without much comprehension. And how many times is the loan broker or banker even at the signing? I am, but that’s very uncommon. … [...] [...] Make sure to read the fine print! So I would venture to say that 99% of loan papers are signed mechanically without much comprehension. And how many times is the loan broker or banker even at the signing? I am, but that’s very uncommon. … [...]

]]> Comment on Make sure to read the fine print! by thomas http://cmcgroup.wordpress.com/2008/02/16/make-sure-to-read-the-fine-print/#comment-146 thomas Thu, 21 Feb 2008 10:25:32 +0000 http://cmcgroup.wordpress.com/?p=104#comment-146 Totally agree that the devils are in the details. It is sad that the same tricks are also used by major financial institutes in their print advertisements. The fine prints are definitely not reader friendly, yet their ad agency still follow same design approach in the last twenty years - putting all the important conditions in the footnotes and hope that readers won't bother to read at all. Totally agree that the devils are in the details.

It is sad that the same tricks are also used by major financial institutes in their print advertisements. The fine prints are definitely not reader friendly, yet their ad agency still follow same design approach in the last twenty years – putting all the important conditions in the footnotes and hope that readers won’t bother to read at all.

]]> Comment on LIBOR versus FED Funds Rate: Close, but not the same by Real Estate Investing Information http://cmcgroup.wordpress.com/2008/01/20/libor-versus-fed-funds-rate-close-but-not-the-same/#comment-137 Real Estate Investing Information Wed, 13 Feb 2008 00:48:04 +0000 http://cmcgroup.wordpress.com/2008/01/20/libor-versus-fed-funds-rate-close-but-not-the-same/#comment-137 Cool article. I guess you will check out our blog.. Thank You Cool article.
I guess you will check out our blog..
Thank You

]]> Comment on Compare PRIME rate to 1 mo LIBOR to FED Funds Rate by cmcgroup http://cmcgroup.wordpress.com/2008/01/22/compare-prime-rate-to-1-mo-libor-to-fed-funds-rate/#comment-93 cmcgroup Mon, 28 Jan 2008 18:32:08 +0000 http://cmcgroup.wordpress.com/2008/01/22/compare-prime-rate-to-1-mo-libor-to-fed-funds-rate/#comment-93 Tim, Thanks for the comment. I read your article and it helps explain the relationship. Tim, Thanks for the comment. I read your article and it helps explain the relationship.

]]> Comment on Compare PRIME rate to 1 mo LIBOR to FED Funds Rate by Tim http://cmcgroup.wordpress.com/2008/01/22/compare-prime-rate-to-1-mo-libor-to-fed-funds-rate/#comment-88 Tim Mon, 28 Jan 2008 01:08:27 +0000 http://cmcgroup.wordpress.com/2008/01/22/compare-prime-rate-to-1-mo-libor-to-fed-funds-rate/#comment-88 This was a good article, thanks for putting it together and publishing it. Knowledge is definitely power when obtaining loans as it is too easy to miss the details which could cost you thousands. For those of you who don't know how the prime rate and fed funds rate are connected, check out a quick reading article I wrote located at <a href="http://themoneykings.com/blog/understand_the_prime_rate_and_save_money" rel="nofollow">http://themoneykings.com/blog/understand_the_prime_rate_and_save_money</a> It just helps show how changes to the fed funds rate can end up affecting the rates you pay for mortgages, credit cards, etc. This was a good article, thanks for putting it together and publishing it. Knowledge is definitely power when obtaining loans as it is too easy to miss the details which could cost you thousands.

For those of you who don’t know how the prime rate and fed funds rate are connected, check out a quick reading article I wrote located at http://themoneykings.com/blog/understand_the_prime_rate_and_save_money

It just helps show how changes to the fed funds rate can end up affecting the rates you pay for mortgages, credit cards, etc.

]]> Comment on 30 year fixed rate versus 1 month LIBOR vs FED funds rate by cmcgroup http://cmcgroup.wordpress.com/2008/01/04/30-year-fixed-rate-versus-1-month-libor-vs-fed-funds-rate/#comment-61 cmcgroup Tue, 22 Jan 2008 21:14:49 +0000 http://cmcgroup.wordpress.com/2008/01/04/30-year-fixed-rate-versus-1-month-libor-vs-fed-funds-rate/#comment-61 Pedro, Thanks for commenting on my blog. You make a good point about the relationship between 1 mo LIBOR and FFR. The rates are daily, not monthly and are published in the Wall Street Journal. Today, the 1 mo London interbank offered rate, or Libor is 3.90250 and the Federal funds effective rate is 4.16 so today 1 mo Libor IS below the FFR. When I compared the indices on a prior post I used monthly data. There certainly is more fluctuation in the indices when you compare on a daily basis. You can search for '1 mo libor daily rate history' and see lots of historical data at sites like http://www.mortgage-x.com/general/indexes/historical_wsj_libor.asp Pedro, Thanks for commenting on my blog. You make a good point about the relationship between 1 mo LIBOR and FFR. The rates are daily, not monthly and are published in the Wall Street Journal. Today, the 1 mo London interbank offered rate, or Libor is 3.90250 and the Federal funds effective rate is 4.16 so today 1 mo Libor IS below the FFR. When I compared the indices on a prior post I used monthly data. There certainly is more fluctuation in the indices when you compare on a daily basis. You can search for ‘1 mo libor daily rate history’ and see lots of historical data at sites like http://www.mortgage-x.com/general/indexes/historical_wsj_libor.asp

]]> Comment on 30 year fixed rate versus 1 month LIBOR vs FED funds rate by cmcgroup http://cmcgroup.wordpress.com/2008/01/04/30-year-fixed-rate-versus-1-month-libor-vs-fed-funds-rate/#comment-60 cmcgroup Tue, 22 Jan 2008 21:07:36 +0000 http://cmcgroup.wordpress.com/2008/01/04/30-year-fixed-rate-versus-1-month-libor-vs-fed-funds-rate/#comment-60 John, Thanks for commenting on my blog. I'll post a comparison of the PRIME rate versus the 1 month LIBOR. You will be able to see that the PRIME is consistently about 2.8% above the 1 mo LIBOR. As far as quarterly versus annual adjustments of a loan if you believe rates are going down and will stay down quarterly would be better, but it all depends on your specific needs for financing. I recommend asking your broker or banker the tough questions on how they will meet your financing needs so you retain control of the decision. Comparing Good Faith Estimates is a wise thing to do. John, Thanks for commenting on my blog. I’ll post a comparison of the PRIME rate versus the 1 month LIBOR. You will be able to see that the PRIME is consistently about 2.8% above the 1 mo LIBOR. As far as quarterly versus annual adjustments of a loan if you believe rates are going down and will stay down quarterly would be better, but it all depends on your specific needs for financing. I recommend asking your broker or banker the tough questions on how they will meet your financing needs so you retain control of the decision. Comparing Good Faith Estimates is a wise thing to do.

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