Ok! so the Feds dropped the Fed Funds Rate down to 3%
And the Discount Rate is now 3.5%
That makes the Prime Rate down yet another 1/2%!
Which means your Home Equity Line of Credit (which is based on Prime) is now at an even better rate!
The balance owed, and the resulting monthly payment due will be coming down!
Your Second might be lower than your First!
That’s good news for what you owe.
It’s too bad your HELOC was frozen. Too bad you probably don’t qualify for a new HELOC.
But look at the bright side, the money you now owe – is at a lower rate than yesterday.
Does this Fed cut really effect fixed rate mortgages?
I’ll Let someone like Robert, Brian Brady, Dan Green, or Rhonda Porter to answer that.
“The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3 percent.
Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.
The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.
Today’s policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity. However, downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh. Voting against was Richard W. Fisher, who preferred no change in the target for the federal funds rate at this meeting.“
This is is a letter I sent to my congressman, Sander Levin and then a second letter I sent to Mr. Henry Paulson, Treasury Secretary. The second letter is much better reading! here goes for anyone listening….
January 10, 2008
Mr. Sander M. Levin
Congressman
27085 Gratiot Avenue
Roseville, MI 48066
Dear Congressman Levin,
The Federal Trade Commission, as you know, regulates the outcome and process of consumer credit reporting. It is my goal to inform you of the disadvantages contained within the system I have navigated to this regard. In the previous 5 years have been experiencing the economical characteristics common to many persons in the state of Michigan. However, having attempted forthright to my best to improve my habits and obtain a credit score far above what is currently reported, am inflamed with the system and believe that FICO and the consumer lending agencies as well as the FTC must be in bed together.
I make this claim with substantial experience at attempting to navigate our laws and the process in place. It is my intention to pursue changes within this system and am asking for your consideration of your thought to it. As a lone consumer I am without substance and ammunition to fight a large system however as a citizen who would like a small mortgage am in a firestorm with the credit reporting agencies due to the constraints placed upon them. The work I have put into correcting my credit reports is singularly impossible without spending inordinate amounts of money and time.
I believe it is a system arranged for just that. My anger and frustration attempting to correct what is the truth has been met with disdain for my efforts and I am at a loss as to why it should cost me to correct my very own private information about my life. Unless of course it is with the intention the FTC assists the lending institutions as well as the credit reporting agencies to keep negative information so as to keep consumer spending and interest rates, etc at an unbearable and unnecessary level for a person such as myself.
It is my intention to continue writing and acting upon this issue until I see change and am asking you for your thoughts about this system. I appreciate your time and any effort you can bear to this regard.
Sincerely,
Barbara J. Bartlett
22213 East Eleven Mile Road
Saint Clair Shores, Michigan 48081
313 647 0647
Bbartlett1356@comcast.net
cc: FTC
Now my letter to Mr. Paulson……
January 22, 2008
Mr. Henry Paulson
Treasury Secretary
United States Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220
Dear Secretary Paulson,
Enclosed please find my recent letter to Congressman Levin regarding my annoyance with the financial reporting procedures your federal department insists upon. Recently you were party to a news conference you stated two focuses were imperative; that to insure our success to “get through this period with little impact…”you suggested would proactively suggest policy measures on a weekly basis…. for or to rating agencies…regarding…. valuation issues that need to be addressed.” You indicated that a “patchwork quilt in the regulatory policies”…. indicated “some holes that don’t seem to be working at this time frame in our country.” May I, if you please, explain the issue I currently must navigate? As a private citizen living in the Detroit area simply want a small mortgage. My attention to my credit report for the past 3-5 years has been met with inattention to my comments and it appears only the credit reporting agencies have clout. This would make it appear that the FICO, lending institutions and the FTC are in bed together to keep the consumer from prospering. Thus we are at a standstill. Enough said. How do I have a chance at spending my money if the government for which I believe in does not believe me? What has happened and where are we headed if my ability to invest is complicated by the very policies your office instills to give the lending institutions the advantage. Should not I, as a citizen be the one that is given the advantage? When did we have this taken away from us? When did our government take it back and when are you going to give it up and back to us. I believe that then and only until you give it back as first suggested by Thomas Jefferson that the citizen is the first to suggest and initiate… Reread your history books Mr. Paulson. I am not able to act upon my finances or experience the freedom the constitution was written. Your office infringes upon my constitutional rights and those of all the citizens of these United States. It is my intention to make this clear.
Thank you,
Sincerely,
Barbara J. Bartlett
Thank you for anyone having trouble with correcting their credit reports and getting a decent lending institution to help them obtain investment capital. I am a responsible person and have a good income but am frustrated with past financial problems I can’t seem to make go away.
BBartlett1356@comcast.net
Thank you for anyone having trouble with correcting their credit reports and getting a decent lending institution to help them obtain investment capital. I am a responsible person and have a good income but am frustrated with past financial problems I can't seem to make go away.
BBartlett1356@comcast.net