Whats a good interest rate?

[lleeder]

With the stock market being unpredictable, whats a good interest rate these days? Is there a safe way to get good interest? Whats like a "normal" interest rate to be getting on your money? What's really good? And what's bad?

[WillfulBoy]

You can get between 5 & 5.50% on a 30 fixed loan these days. That works out to about a $700 /per month payment for every hundred thousand dollars of the loan. Avoid any interest only, or 7 year arms. Avoid any adjustable rate loan if you can.

If you have little money to use a down payment, find a lender whos willing to work with you and give you a 100% mortgage, but have them make 2 separate loans out of it. 75% on one / and 25% on the second mortgage. This way you can avoid a couple hundred dollars a month in PMI (private mortgage insurance) that is usually required when the down payment is less than 20% of the loan value.

Good luck.

[Ogre]

CD rates are anywhere from 4-4.5 % depending on how long you want to tie up your money. If you are not sure whether or not you need your money anytime soon, there are "no risk" products that earn about 1% less than that. IRA savings accounts bring about 2.75% right now. Those products to include IRA CDs ( % 4.25) are retirement accounts with longer term tax advantages. As far as the market goes there are quite a few "blue chips" that are undervalued right now just be wary of thier exposure to mortgage backed securities. As much as Cramer and the rest of the soothsayers want you to believe they know, they don't. You should find someone or a few people you trust that are professionals and ask thier opinions and see if you can come up with a consensus. I will tell you this, I believe that the FIFO rule will apply for US Banks as opposed to Global Banks. We were FIRST IN and I think we will be FIRST OUT. So while it seems dark now I think things will improve for the investor here within the next two years.

Until then a CD getting you 4.25% that is a sure thing isn't so bad IMO.

[Tenbatsuzen]

You can get between 5 & 5.50% on a 30 fixed loan these days. That works out to about a $700 /per month payment for every hundred thousand dollars of the loan. Avoid any interest only, or 7 year arms. Avoid any adjustable rate loan if you can.


Good luck.


Uh, what? Best rate you can get with good credit and docs and no points is six, MAYBE 5.75. No way you're getting 5 to 5.5 nowadays.

[Tenbatsuzen]

You can get between 5 & 5.50% on a 30 fixed loan these days. That works out to about a $700 /per month payment for every hundred thousand dollars of the loan. Avoid any interest only, or 7 year arms. Avoid any adjustable rate loan if you can.

If you have little money to use a down payment, find a lender whos willing to work with you and give you a 100% mortgage, but have them make 2 separate loans out of it. 75% on one / and 25% on the second mortgage. This way you can avoid a couple hundred dollars a month in PMI (private mortgage insurance) that is usually required when the down payment is less than 20% of the loan value.

Good luck.

Also, taking a second loan to avoid PMI is a bad move. If you research, you'll find lower PMI rates, plus PMI is tax deductible now.

[Tenbatsuzen]

Are you looking for savings account for every day money, or are you looking at retirement funds? I'm a little confused by your initial post.

I can help, but I want to know what your goals are.

I also want to know how much (plus or minus 5000) that you're looking to put in.

[Devo37]

i've heard from several people that government bonds are a great way to grow your money. does anyone know anything about them (minimum deposit, term length, bond types, etc.)

i was looking at CD's, but the rates right now are barely above a basic savings account.