Quick Question...Floating Interest Rates

2008-01-23 00:21:48

#1

LT.Victim: Member; +1,175|7048|British Columbia, Canada

I'm talking about Mortgage Floating Interest rates..

How is it determined when the Interest goes up or down?

Is it if the economy is doing good, the rate goes up, or down?

If not the economy, then what...

Thanks, karma for any answers.. I tried google and Wiki but couldn't find any clear answers..

2008-01-23 00:25:54

#2

LividBovine: The Year of the Cow!; +175|6865|MN

Are you meaning ARM (adjustable rate mortgage) loans?

"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)

2008-01-23 00:26:25

#3

LT.Victim: Member; +1,175|7048|British Columbia, Canada

LividBovine wrote:
Are you meaning ARM (adjustable rate mortgage) loans?

Ya.. Thats what they call them in the US I believe..

2008-01-23 00:29:17

#4

LividBovine: The Year of the Cow!; +175|6865|MN

ARM loans are based on the interest rate that is set by the government. Like right now the government is trying to spark spending, so they are lowering the interest rates. Generally when the economy is doing well the rates go up.

they are a bad idea unless you don't plan on having the loan very long.

"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)

2008-01-23 00:31:16

#5

LT.Victim: Member; +1,175|7048|British Columbia, Canada

Alright thanks, that answers my question..

2008-01-23 01:05:29

#6

Vub: The Power of Two; +188|6980|Sydney, Australia

In a nutshell, interest rates affect the amount of investment and hence economic growth. When the economy is doing well, interest rates are raised to curb inflation (as economic growth can lead to inflation). When the economy is in tough waters, the interest rate is dropped so businesses can borrow more money for cheaper to finance investment, thus increasing economic growth.

2008-01-23 01:10:14

#7

^*AlphA*^: F*ckers; +3,135|7224|The Hague, Netherlands

closed on OP's request.

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BF2S Forums Quick Question...Floating Interest Rates

LividBovine wrote:

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