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Prime Interest Rate?

We bought a house with a 20 year mortgage. We have been paying if off for 11 years, each year the interest rate changes based on the "prime" Currently we are paying the a rather high rate, should we look for a refinance, or is the prime going to drop soon?. by GennaS99 from Hollywood, California. Apr 23rd 2010 Reply


Kevin Lane (Kevin Lane)
#114 ranked lender in California - 7 contributions

The prime is at a 40 year low, it will only go up rapidly from this point. The question is not if but when..... the prime is the fastest moving of all indexes and is not tied to the Bond rate .... in 1995 era the prime was 16 % plus an can rise several % in a year, email me kevin@realty-answers.com I'll send you a detailed graph..... If you have the cash .... just do a 10 year P & I loan , you'll save $10,000 's in interest payments, also it a good time to invest or buy....... record low prices !

Apr 23rd 2010
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Steven Brand (stevenbrand)
#3 ranked lender in Minnesota - 102 contributions

I'm interested to know more about the loan you have and the "fully indexed rate" if you say you're paying a "rather high rate". If you've been paying the loan down you're probably in a better position than most people and you have options regarding "fixing in" a low rate and/or payment. I'd suggest contacting a good local Mortgage Guy and bringing in your paperwork of what you have now. Kevin answered you pretty well that "Prime ain't going down".

Apr 24th 2010
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Steven Brand (stevenbrand)
#3 ranked lender in Minnesota - 102 contributions

I'm interested to know more about the loan you have and the "fully indexed rate" if you say you're paying a "rather high rate". If you've been paying the loan down you're probably in a better position than most people and you have options regarding "fixing in" a low rate and/or payment. I'd suggest contacting a good local Mortgage Guy and bringing in your paperwork of what you have now. Kevin answered you pretty well that "Prime ain't going down".

Apr 24th 2010
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Marty Borges (mborges)
#251 ranked lender in California - 20 contributions

Prime can only go up.. If your overall rate is above 4.875% then I think its time to refinance. If you want, you can do a 20 year loan so you don't have to go back into a 30 year fix. 20 year fix rates are the same as a 30 year fix and right now we can offer you a 4.875% on a 30 year fix and lower if you are willing to pay a little more to buy it down! Call me and we can go over some pricing to see if it makes sense or not! Marty 310-971-7444

Apr 26th 2010
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