It’s very interesting to see 3 year adjustable rate mortgages lower than a 30 year fixed rate. Usually one would expect long term rates to be more expensive because there is more risk over 30 years than over 3 years. If rates go up anytime over the life of the loan the bank will be still be stuck with you at the original low rate. Every once in a while things get turned upside down and we get what is called an inverted yield curve.
I don’t know why some lenders even bother showing these short term rates when they are more than the 30 year fixed. The only way you’ll win is by interest rates going down below the current lower 30 year fixed rate in the next few years. That doesn’t seem to me to be a very good thing to bet on.
This entry was posted
on Tuesday, December 5th, 2006 at 2:14 pm and is filed under Miscellaneous.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
What's happening in the Atlanta real estate market? I'll tell you my humble opinion on things going on in my small part of the world. I'll let you know details about the subdivisions that I specialize in and details about the really nice homes that come on the market.
