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| Title: | Market Investing |
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| Moderator: | 2155::michaud |
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| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
226.0. "T-Bill Rate Flux, and Refinancing " by COGITO::LMARCOCCIO () Thu Jun 25 1992 14:38
We are currently reconsidering refinancing our mortgage, versus
allowing the ARM to mature and the fixed rate to kick-in. We now have a
3 year ARM which comes due for adjustment August, 1993. The adjustment
at that time will be based upon the 3-year T-Bill + 2.75%.
Herein lies the quandry...if the ARM were adjusted today, the resulting
interest rate would be about 8.5% (the bank said the 3-year T-Bill was at
5.679% currently). If the 3-year T-Bill can remain stable for the next
year, we would much prefer to not go through the hassle of refinancing
plus the additional $$ we would need (closing costs etc).
The question I think we need to consider is how will the T-Bill do
over the next year. What influences a T-Bill rate? I understand the
T-Bill is a loan to the federal government, and they are fairly low
right now. However we are in an election year....
Feedback/help much appreciated.
| T.R | Title | User | Personal
Name | Date | Lines |
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| 226.1 | which way the wind blows | PCCAD2::DINGELDEIN | PHOENIX | Fri Jun 26 1992 16:46 | 13 |
| You're asking the million dollar question. Which way are interest rates
heading? Who knows! One thing I do know is short term rates are very
low historically and any whiff of inflation or accelerated domestic
growth will push rates back up again. Long term rates (30 year) are
also historically low. Anything approaching 8% is good. If you're a
gambler hang in there, If you need stability lock in a long rate.
These are very uncertain times and your Q is a tough one.
P.S. - An election is approaching and volatility may be quite high
over the next 6 months .
dan d
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