The End of Cheap Credit

[Greebo]

The joyride is over.

“Americans have assumed the roller coaster goes one way,” said Bill Gross, whose investment firm, Pimco, has taken part in a broad sell-off of government debt, which has pushed up interest rates. “It’s been a great thrill as rates descended, but now we face an extended climb.”

Another good reason not to use debt if you have an option - and you do have an option.

We could be looking at the eventual return of double digit mortgage rates. If you have a variable rate mortgage, GET RID OF IT NOW! Refinance to a fixed!!!

[Mom2-3]

I would love to refi, but being underwater, I can't. I knew this was coming. Back to the 80's....

[MomToTwoBoys]

We were all just discussing this at Easter. DH and I are up for refinancing in July and we're already freaked out that we may have to pay more than 4.49% for our 5 year fixed rate. We don't do well when it comes to rising interest rates and we have stable incomes.

[monkeywrangler71]

We were all just discussing this at Easter. DH and I are up for refinancing in July and we're already freaked out that we may have to pay more than 4.49% for our 5 year fixed rate. We don't do well when it comes to rising interest rates and we have stable incomes.

Call the bank and ask if you can renew early. BoC has said they will be hiking rates in the summer, so they will announce it either June 1 or July 20. Banks have already started increasing the 5 year fixed in anticipation, so do it now if you can.

[Greebo]

I *should* point out that this is a USA related article. Our mortgages work very differently from those of our Canuk neighbors

[kimmy4433]

Greebo be nice....Canuks oh I could say something about that hockey team but I wont! lol At least we are playing Phoenix the first round and not Vancouver!

My suggestion would be to call and talk to your bank. Most of them are willing to help right now because of the realestate market. I talked with my bank (after fear of them telling me no) and the rep I spoke with said, "We will do anything and everything to keep you in your house. We don't want it as it would cost us money"

On that note, I did find out that my "In house mod" was approved today!!!

[monkeywrangler71]

Guys please, it's Canuck, not Canuk. You're making us sound silly

[Greebo]

Guys please, it's Canuck, not Canuk. You're making us sound silly

May I direct your attention to the immediate left of this posting?

[mommy4ever]

We were all just discussing this at Easter. DH and I are up for refinancing in July and we're already freaked out that we may have to pay more than 4.49% for our 5 year fixed rate. We don't do well when it comes to rising interest rates and we have stable incomes.

I don't know who your mortgage is through but our mortgage thru CIBC you can renew up to 6 mo early, so I imagine it's pretty standard here. Also, don't assume the posted rate is what they will offer you, if you are in good standing, they offer lower. We are just about 3%.

[Dutchie]

Even though this article is about America and the American banks, my experience is that what happens across there, influences what happens across here.

Thanks for the warning!

[Preston]

The joyride is over.

We could be looking at the eventual return of double digit mortgage rates. If you have a variable rate mortgage, GET RID OF IT NOW! Refinance to a fixed!!!

I never understood in the past few years why ANYBODY would want an ARM. I kept hearing about 'record low interest rates' and I figured why would you want something that adjusts if the interest rates are at bottom?

Maybe they were, maybe they weren't, but I guess I'll have to tough it out with Bank of America at 5%.

[sinopa27]

I have a variable which cannot get any higher than 7%. It just dropped to 3.25% from 3.75%. It got as high as 6%. I think I am going to keep paying mortage at the higher rate since I cannot refinance. Divorce and other issues screwed up the credit.