Federal Mortgage Funding
We have all had questions on Federal Mortgage Funding before. Below are the top questions posed by visitors just like you to our. We hope our answers located below will help you solve your funding problems today. Feel free to ask another question, or even comment on what has been written.
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Ethel Said:
Why do 30 year mortgage rates continue to rise, while the fed continues to lower the fed funds rate?We Answered:
the fed rate you're refering to is the rate for overnight borrowing to what is in the industry referred to as window loans - loans that keep the banks liquid amounts where the government requires.funding for mortgages, which are long term by nature, comes from investors. there are still too many nervous people hessitant to invest in mortgages again.
so basically, these two pools of money come from different sources and while one might be inclined to think they should move the same direction, there is nothing that really ties them together.
Kim Said:
What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts?We Answered:
There are multiple indices that are used by mortgage holders to adjust a mortgage rate. some are tied to t tresury bills, some are tied to the LIBOR rate.You will need to check with the mortgage holder, (or just check your original mortgage contract) and find out what index your mortgage is tied to, and what the"spread" is. (The spread is the additional % added to the index).
Tracey Said:
Why Do People Think Cutting Interest Rates Will Stop The Mortgage Problem?We Answered:
I bought my house back when all this started, but I got a decent fixed loan at 6%. I'm a truck driver. I don't know what the answer is, but things are slowing down. It is getting harder and harder to find freight to put in my trailer. It seems like every time get unloaded, it's over 24 hours before my dispatcher finds another load for me to haul. Guys that were making a killing a year ago hauling lumber and building supplies are getting hit hard right now, because no one is building anything.As for my mortgage payment, it's getting harder and harder to make it every month. I haven't been home in three months now for time off. I can't afford it. The only time I get to see my wife and kids is when I'm passing through and have time to stop for a few hours. Normally I'm home every two weeks. It's definetly slowing down. trust me, we feel it before anyone.
My home's value has sunk below what I owe. And I sank a $10,000 down payment on the thing when I purchased it. I feel like I'm hanging on by my fingertips. Like I said I don't know what the answer is. I thought since I got the fixed rate and didn't get the ARM I was safe. But the amount of people going into foreclosure has affacted me. I didn't see that coming.
If I had it to do all over again, I would have stayed in the apartment and waited until now to buy.
Pedro Said:
Question re: Democrat opposition to Federal Housing Finance Reform Act ?We Answered:
Wouldn't that have opened a whole new other can of worms, with the separation of church and state?In regard to the constitution, taxes would be imposed on these groups who are now tax exempt, for receiving federal funds. It is far better for faith based groups to do the work voluntarily as many are presently doing without the funding, and they prefer it that way.
It is far better to give than to receive. I also read the article and concur with Miss Kitty.
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Scott Said:
Federal Reserve's ability to affect availability of Mortgage Funds ?We Answered:
Cite my sources????Do your own homework.
Betty Said:
How do feds cutting rates affect homeowners with mortgage payments?We Answered:
For the most part the rate cut only means that your payment will not be going up soon. It may lower your payments, but that is not likely.The people who benefit the most are those that are going to refinance, or those who are going to purchase a home.
Thier rates will be lower than they would have been without the cut.
If you have equity in your home, you may want to look into refinancing as well. Getting into a fixed loan at a lower rate is always a good move.