What is the point of interest cuts?

The bank of England are cutting rates again I hear. My mortgage doesn%26#039;t go down though. I am on a standard variable and my lender never pass the advantage on to me. I missed out in December and will again. The Govt need to be more stricter with these mortgage companies. I really could do with the lower payments at the moment. As last May my discount rate ended and my payments went up by 250 pounds in one go!. Then my mortgage lender would not let me take out a new fixed rate deal. These lenders are creeps. As soon as interest rates go up your mortgage does. When interest rates go down the mortgage never does.

What is the point of interest cuts?unsecured loan

When the BOE cuts interest rates, your lender is not mandated to pass on that cut to you. Yes, I know it seems unfair and conversely lenders are all too quick to pass on an increase immediately. Essentially, a cut by the BOE is aimed at business and not the individual . . . it hopes to create a certain amount of cheaper borrowing for companies to invest in capital equipment, job creation and the likes. When the economy slows, as it is doing, the BOE/Government must try to counteract that slowing in order to keep things on an even keel and promote growth. In the short term, you may not benefit but the emphasis is on the bigger picture. I know it can be difficult and we all suffer a little, but interest rates even at what they are today are historically low, so if you find yourself in difficulty in the short term, you have to reconsider your options with either other lenders or even economise for the short term. I hope everything works out for you.

What is the point of interest cuts? loan

Are you on a variable or a fixed rate mortgage?

if you are fixed rate you will never see a difference, whatever the rate may be.

Dont forget also that the bank of englands interest rate is a SET base rate, and mortgage lenders only use that figure as a guideline rather than a fixed amount.|||I think you need to move mortgage lender|||You arent fixed to one lender, you can switch lenders any time, especially as your discount rate has ended. You should really think about shopping around, go speak to an independent mortgage broker who will be able to search a panel of lenders for you to find the best deals (for free).|||The Bank of England doesn%26#039;t have any part to play in mortgage rates. The repo rate it sets is the target rate at which banks lend to each other, and at which it provides short term cover (liquidity) when needed. The repo rate is being lowered to encourage banks to be more relaxed about lending money to each other, because if they don%26#039;t there is a possibility that your lender may not be able to get access to %26quot;cheap%26quot; money to cover the loan it made to you. If they can%26#039;t they will want to pass on the additional cost to you. You may not appreciate that banks lend and borrow off each other every day because they are obliged to balance their books. They don%26#039;t have a choice but to borrow money if they think they might be short. And when other banks are reluctant to lend the price (interest rate) of those funds goes up. Recently banks have sometimes been having to borrow at rates way above the rate you are being charged.

The rate charged by your mortgage lender is influenced by two things: the amount of profit they want to make and the amount of risk they think they are taking by lending you the money in the first place. If they thought that the amount of profit they make from you wasn%26#039;t worth the risk they take in lending it to you, i.e. that they might end up losing money, they wouldn%26#039;t lend to you at all. They won%26#039;t want to let you change to a fixed rate now because they would have to fix you at the sky-high rates that the market is playing with now, and as bad as your situation is, you really don%26#039;t want to be exposed to them. What everyone missed in the Northern Rock fiasco was that the reason they went to the Bank of England in the first place was so that they didn%26#039;t have to pass the real cost of funds onto their mortgage borrowers. They could have done that, and repossessed all the houses of the defaulters that eventuated (that%26#039;s what always used to happen) but they chose instead to suck it up themselves. Their mortgage holders (I am one) are very very lucky.

Unfortunately you have fallen into a common trap. You have been dazzled by the lower %26quot;teazer%26quot; rate that is used to get you tied into the mortgage, but the rate that really matters is the one that applies after the teazer period, and your one isn%26#039;t fixed to anything. Personally I would never go for a mortgage rate that is variable unless it is tied to the repo rate. If I were you I would try and tighten my belt and get through this. The bad times will pass and you%26#039;ll be able to renegotiate a better deal.

Best of luck.|||If your not happy with your mortgage then re-mortgage there are lots of deals around.|||It%26#039;s a fiscal thing. Management of the Economy. It plays havoc though with the returns on my savings.

Girlfriend stuck in bad auto loan. We did the research and they call it a 3rd Party Loan?

Loan prior to us meeting. We went to trade in the car to move up. Found out what kind of mess she had got in years ago. No dealer will take this car as a trade because she is a ghost on the loan. Some guy in some hole in the wall financed this car for her but actually he financed it through his bank. He gets a low rate and charges her a higher rate which I guess is all on the up and up but on the Title it shows the Finance place that she went through and his bank I assume. No dealership will take her car and pay it off as there is no guarentee that he will do so and send them the title. He also somehow wrote this deal up as a Lease. When questioned, he states that the car would be paid off way before the Lease expired??? What recourse does he have if we just turn over the car? This car doesn%26#039;t even exist on her credit. She doesn%26#039;t want to affect the co sighner she had when she got the car 4 years ago. Like I said, she doesn%26#039;t exist to the Bank thats on the Title, just to the middle guy

Girlfriend stuck in bad auto loan. We did the research and they call it a 3rd Party Loan?student loan consolidation

Be carefull, In Illinois there is no such thing but the middle guy can go after your credit after you give the car back because, remember, you have a signed contract, He can sell the contract to a collection agency.

Girlfriend stuck in bad auto loan. We did the research and they call it a 3rd Party Loan? loan

What name is on the title as registered owner? That would be the only person who can do anything with the vehicle, and it%26#039;s unclear from your question who that would be. Who is the legal owner?

If it is written up as a lease, she is renting miles on the car, not buying it.

I would suggest a half hour with an attorney.

What does the deflating American dollar mean to you?

I read an article in the BBC saying their pound is stronger then the American dollar by more then double. So I did some more research and I found out the Canadian Dollar is also increasing while the American Dollar is decreasing, Along with the decreasing American dollar the Swiss banks lowered interest rates due to the poor American dollar! I understand that globally we are all intertwined economically but what is pleaguing my mind is the Question: What does the deflating american dollar mean for Americans? Good, Bad, Indifferent? With all the housing prices dropping that good (for me), but I can also see why it is trouble. I just need a little more indepth as to deflation on the dollar and I would be greatful if someone can explain it properly without a whole bunch of ignorant answers!!!!!! Thanks!

What does the deflating American dollar mean to you?small business loans

Deflation, like any economic event, has several consequences. The most obvious of these, the American dollar is worth less when exchanged for foreign currency. It costs more money for you to travel and more importantly, to purchase imported products / services.

The flip-side of this, is that American products are cheaper; especially for the rest of the world whose currency is suddenly worth more (relatively). Thus the US will export more goods / services.

To you, the average consumer, it means foreign goods are more expensive. But it also means that demand for American goods increase, fueling the economy. Also, those dropping housing prices are due much more to the glut of houses on the market rather than deflation. Hope that helps.

What does the deflating American dollar mean to you?

loan

deflation of the american dollar will make foregin goods more expensive to us, since it cost the company more to purchase the goods in the first place, and since partically all the consumer goods are imported that not good for us. also it will make travel to foregin countries more expensive.|||Deflation of money is ALWAYS bad, people think that the value of money going up is good but it%26#039;s not. Whenever you see deflation, it means that the US gov%26#039;t is in a recession (this means that business is going down and unemployment increases)

However, too much inflation (over 3% inflation) is bad because then it can cause a price wage spiral ( both prices and wages go way out of control). Right now, the deflation is at 3%, the gov%26#039;t will try and stimulate the economy by buying bonds it sold earlier and decrease interest rates so people take out more loans. More loands equals more spending and that allows businesses to thrive and bring the strength of the dollar up.|||I see several people have given some of the effects of the falling dollar, but no one has yet explained the reason for its decreasing value. In essence, the dollar is being devalued around the world because the rest of the world has less and less faith in its value. It%26#039;s as simple as that. The economic policies of US government have driven our economy into such a state of debt, both in terms of annual deficit spending and the total, overall long-term accumulated indebtedness, that other entities worldwide are beginning to doubt our ability to repay those debts. One of the biggest ways we GET into that debt is issuing bonds, which, in reality, are nothing more than IOUs. We%26#039;ve asked the world to lend us money, and when we pay them, and IF we pay them, we pay them in dollars whose value is guaranteed by nothing more than what our combined economy is worth, according to what our government says it is worth.

So yes, the dollar now buys less foreign goods, because they want more of them in order to feel they are getting something of value. And yes, our products sell more cheaply around the world. I note one poster suggests that exports are good for our economy, and there%26#039;s no doubt that is true. But, I am willing to bet that neither he, nor I, have enough information to figure out whether or not the %26quot;value%26quot; of that export market offsets the damage done to the economy as millions of us not benefiting from those export jobs find we have to pay more for everything.

Also, we are not experiencing %26quot;deflation.%26quot; Deflation is the opposite of inflation... Inflation happens when too much money is available to purchase too few goods and services. Prices go up simply because there is too much money around. Deflation is the opposite. There%26#039;s not enough money in the economy to buy the many products that are available. What is going on with the dollar is about devaluation, not deflation. The real truth is, we%26#039;re experiencing devaluation of our currency, coupled with inflation in certain areas of the economy, particularly including the areas of energy and food, because the US is competing with Europe, India, and China to procure an increasing tighter supply of both, and the last two economies I mentioned are becoming stronger and more wealthy by the day, giving them the wealth to out bid us for precious necessities.|||The correct term is Devaluation not Deflation. Deflation does not occur in modern economy. That would mean that the present value of money is worth less than future value. In other words prices drop as time goes by... The devaluation of the dollar means that more dollars will be needed to travel, and the actual %26quot;value%26quot; of a dollar has dropped. The good thing about this is you can actually benefit by purchasing Euro CD%26#039;s or investing in foreign companies due to the fact they will be purchasing infiltrating the American economy by investing in American products,companies or Real Estate Hope this helps.|||We call it USD, or the US Dollar. The USD has been falling since the election turmoil of 2000. The standard all currencies are measured against is Gold. Gold now trades for over $800 per ounce. Effectively, this means the US Dollar of 2000 is only worth 30 cents today.

First question is why the USD is falling against Gold. And the answer is easy. The US is borrowing far more than it%26#039;s bringing in. It%26#039;s as if you made $10,000 a year, but you were spending $15,000. You can%26#039;t do that year after year and be in good financial shape. The US is not in good financial shape. Excuses, no matter if it%26#039;s for war, does not fix the debt issue. I%26#039;m sure your spouse can think of reasons they spent money too.... but, hearing that month after month doesn%26#039;t fix your personal budget either.

The other reason is how currencies are valued. It%26#039;s a pyrmaid scheme on the largest of scales. Until Nixon, it used to be that 1/10th of our currency was backed by Gold. One tenth because some genious back in the 1800%26#039;s discovered that only 10% of the people ever came back for their Gold. When that discovery was made, then the banks decided that they need only hold 1/10 of the Gold necessary for the money they print. It all works great until a scare happens and people demand their money. Now, our currency isn%26#039;t linked to Gold. But, Gold is still the only world standard. That means our USD is free to go up and down against other currencies regardless of the Gold in supply.

The Central Bank from Europe, Australia, Japan, and Germany along with the US Federal Reserve just injected 315 billion dollars into American Banks and Investment firms to save them from going under because of the bad loans they%26#039;ve been making. That equates to 1/3 of the annual income taxes US Taxpayers pay. This is not a loan. This is printing more money. When you just print money without taking other money out of circulation, you devalue the money (e.g. this is the same as if you were a company and released more stock - you%26#039;ve deflated the value for current stock holders).

The problem is that loans need to be made for more money to be created. Eventually, there are not enough people to take out the loans to meet the growing needs of the currency. Then, currency is just printed. Without Gold, even just 1/10 scale, to back it up.... you have a currency that is potentially worthless.

Because the US is such a debtor nation, it%26#039;s critical that the world trade oil in USD. The world does. Iraq tried to change that, knowing the Euro was more stable. That wasn%26#039;t acceptable, so we took their leader out. Iran has raised this desire to trade oil in Euro%26#039;s too, and even opened an exchange to do just that. It resulted in threats of war. They took it off the table for awhlie. Now, it%26#039;s back on the table. Now, it%26#039;s back to threats of war. Why? 80% of the USD is traded for oil, not in American hands. If that 80% isn%26#039;t needed, the USD has no need outside the USA and will fall extremely fast.

What is the best type of construction loan/permanent financing?

My husband and I are 30 and 31 and have 3 kids. We%26#039;ve owned our home for 7 yrs and owe 65K plus a 40K equity line. We have no other debt except our 2 car loans. Our house is now worth at least 130K as is. We are having plans drawn up to add a second floor with our own money but would like to know the best place to get a construction/permanent financing loan for the addition. Our credit scores are 787 and 740 and my husband makes 65K a year and I make about 30K working from home. I%26#039;ve heard some online banks have great rates or would it be better to go with our mortage co. (WAMU) or the credit union we have our 2 car loans and equity line from? **Plus, my husband is a General Contractor and will be doing most of the work himself. Will that affect the payouts? Thanks!

What is the best type of construction loan/permanent financing?bank loan

Most lenders will not like the fact that your husband will be acting as his own general contractor, even if he is very qualified. If he has a friend who could be the contractor (at least on paper) it will save you worlds of trouble...

The equity line of credit you mentioned carries a higher rate of interest than a straight home improvement loan. Consider converting it using the same lender.

Some states will not allow more than one equity loan on a mortgaged home. Check with your banker. If that proves true in your state, there is always the possibility of paying off the equity line and obtaining a completely new secondary loan, which can include the money for the addition. Shopping around this type of loan can be very helpful. It can be very differnet from one type of institution to another. Credit Unions may have lower fees, but usually are not as competetive as banks in terms of interest rates. I would highly recommend talking with a seasoned mortgage broker. Even though they probably won%26#039;t offer this type of financing, they will be helpful in giving you unbiased information as to your lowest cost alternative(s) and help steer you away from trouble by saying the wrong things to potential lenders.

If all else fails, you can completely refinance the house with an FHA 203K interim construction loan, or similar conventional loan. They carry 1.5 to 2% higher rates than regular mortgages, but after 12 on time payments can be %26quot;streamlined%26quot; for a super easy refiinance at normal, current rates of interest. There are no other conditions to be met for these types of refinance. They won%26#039;t even consider credit if the payments are timely. It is automatically approved.

Your FICO scores, income and debt ratios are excellent. This sounds very much like a sensible thing to invest your time, energy and money in. You may have to do some shopping around, but it can be done.

However, I would avoid internet lending. I%26#039;ve of many cases that did not work out for myriad reasons; and only a few that have been satisfactory. This is a loan for a bricks and mortar institution. Good luck.

What is the best type of construction loan/permanent financing?

loan

..........

Investing while in college?

I am not that familiar yet with investing, but I am reading along when I have time. What I want to know Is:

Is it required to have an income to buy shares?

And is there a minimum amount of cash I would need to even start investing? I had %26lt;$2000 to spend and my friend told me to put it to good use and buy shares but I%26#039;ve read around that there is a minimum of $10,000 to start. He said that if I start early there is a low risk because I am still young(19) since I won%26#039;t lose alot as opposed to other adults with assets.

Another option I%26#039;ve been looking at are CD%26#039;s, can anyone recommend any good banks with good rates? (I am in So Cal)

I will be doing my own research to expand my knowledge on investing, but would like some input on how, if possible, I can put this money to good use.

Investing while in college?loan officer

it is good that u can start with cash that you can afford to lose. so, here is my tips to get you started in stock investing.

fundamentally, you can use various key financial ratios to start screening which stock worth your hard earned money. from there, you can go to the next level by further study how they perform qualitatively. Look here for more info:

How to Pick A Good Stock

http://www.stock-investment-made-easy.co...

Guide in Analyzing Stock

http://www.stock-investment-made-easy.co...

then, you must study how much the stock worth. to do this stock valuation, you have to calculate intrinsic value. once you got it, buy the stock when it is at its margin of safety, either it was discounted than its intrinsic value, or discounted from the past historical prices. Look here for details:

How to Calculate Intrinsic Value

http://www.stock-investment-made-easy.co...

How to Determine Margin of Safety

http://www.stock-investment-made-easy.co...

now the last point but the most important things, how you can make money from it? look, good company will grow over time. if you invest for your retirement, you can sell the stock after 20 years with as much as 30% return per year! doesn%26#039;t it sounds good? and besides, you%26#039;ll be earning dividends year after year, which will also grow annually!

Penny Stocks, Short Cut to Wealth

http://www.stock-investment-made-easy.co...

Investing while in college?

loan

You%26#039;re not really going to be able to invest while in college. That is, unless you go part-time and work full-time.

Your friend is wrong. There is always risk. Think about it. You have less than $2000 and you could lose it all. I would consider that a risk, wouldn%26#039;t you? Sure, you don%26#039;t have a mortgage or two car payments. But you can still always be more broke!

The stock market is a sticky thing. You can certainly invest just about any amount through an online broker but, for example, if Google shares are $700 each and you have less than $2000 and most brokers charge a fee... it%26#039;s going to be a slow start.

I would recommend ING Direct for CD%26#039;s.|||forget cds they suck, go here for a 4.5% savings account.

http://www.hsbcdirect.com/1/2/1/offer?co...

buying stocks is also good, just pick one good stock and buy as much as you can. and sit on it. it should earn you on average 10% a year. do not diversify thats what people who like to stay poor do. the rich can diversify because they have a lot of money. put all your money in where you get the highest return on your investment.

fear is an investors worst enemy, do not move you money around to much let it sit in one place and make you money.|||I have been investing for 44 years and can tell you from experience that the direction you are going is one way to get wealthy. You do not need any one set amount of cash. Find an on-line broker and get started.

I had a good job, before retiring, and made five times more money in the market than all of my 32 years of pay checks. My first buy was for $400. Don%26#039;t waste your time on CD,s.|||No you do not have to have an income to start investing in your future. I would like to commend you for being a 19 yr. old who is even thinking about his future. Even though you have no income you have a lump sum amount that you can invest. You have to continue to do your research and see what route works better for the goal you want to achieve. I would say a Mutual Fund is a good option. You could purchase a mutual fund that will invest in several stocks for you. At least your $2000 will be gaining interest. Then when you do get a job just keep adding to it or purchase more.|||1. An income is not required to buy shares in a taxable account. However, once you do so, you may have a slight income (the dividends that you receive from the shares), on which you may owe income tax. An income is required to buy shares in certain types of accounts designed for retirement savings, such as IRAs.

2. There is not a minimum of $10,000 to buy shares, except in a few companies. You can usually get started with less.

3. Investing while in college without an income usually does not work, because college students without an income usually need all their money for other purposes (tuition, pizza, etc.).

4. There is a risk and you may lose money. Do not invest the money that you will need while a student. However, you may invest money that you will not need until you are old (retired or over 60), because even if you lose money some years, you will probably make it back in other years.|||Well, I just put my money in a CD and I got 4.98% for 4 months....If you compound it for a whole year...It would come out to 15.3%...which is astronomical....CDs go up and down depending on what the Feds do to interest rates....I was lucky I locked in...Just go into any bank and take a look at their sign...See what they are paying for CDs...Remember to take note how many months the CD is...This can make the difference of making 10% a year, or 15% a year...|||For the last 4 months the FXCM sentiment aggressive fund has 52% return. (www.fxcm.com). If you open an account through a broker (such as Self-Actualizer Financial Solutions), you can get a big discount on the performance fees--see www.self-actualizer-fs.com

You can open an account with as little as $1,000 until Nov 30; that minimum will increase to $5,000 on Dec 1, as per FXCM.

Statistic hw?

1. Top 15% of student get A.Sample 4 from 200 to complete problem. That 2 of 4 got A%26#039;s use:

A. Binomial distribution

B.normal distribution

C.T dis 3 degree of freedom

d. T distribution with 199 deg.

E. None

2. Summary measure computed from population is a ?

A.Parameter

b.Stats

c. population

d.Sample

e. None

3. Sampled 20 banks and recorded rates for 30 years.Data is

A.discrete

B.continuous

c. binomial

d. none

Statistic hw?quick loan

1) the answer is A, binomial. It can%26#039;t be any of the others, the normal and the student t are both continuous distribution, but the question asked deals with discrete probabilities. So that means only A could be correct. Why is this binomial? The binomial is the sum of n independent and identically distributed Bernoulli trials. In this case each Bernoulli trial is one of the four students sampled. Each as a 15% probability of having an A.

Let X be the number of students sampled who have an A. X has the binomial distribution with n = 4 trials and success probability p = 0.15

In general, if X has the binomial distribution with n trials and a success probability of p then

P[X = x] = n!/(x!(n-x)!) * p^x * (1-p)^(n-x)

for values of x = 0, 1, 2, ..., n

P[X = x] = 0 for any other value of x.

The probability mass function is derived by looking at the number of combination of x objects chosen from n objects and then a total of x success and n - x failures.

Or, in other words, the binomial is the sum of n independent and identically distributed Bernoulli trials.

X ~ Binomial( n , p )

the mean of the binomial distribution is n * p = 0.6

the variance of the binomial distribution is n * p * (1 - p) = 0.51

the standard deviation is the square root of the variance = 鈭?( n * p * (1 - p)) = 0.7141428

The Probability Mass Function, PMF,

f(X) = P(X = x) is:

P( X = 0 ) = 0.5220062

P( X = 1 ) = 0.368475

P( X = 2 ) = 0.0975375

P( X = 3 ) = 0.011475

P( X = 4 ) = 0.00050625

2) parameter.

parameters define populaitons, statistics are from samples.

3) the data is continuous because the rates could be any value between 0 and 100%.

Are on line investment banks for real?

I want to save money but i am on a goverment dissability and only aloud to have 5000.00 in a savings acount at all times if i have more i will lose my dissability untill all funds are gone. So i am looking into online investing with so call banks that offer high intrest rate, daily rates, on your balance. Are these so called banks for real or scams. If they are real witch one should i pick?

Are on line investment banks for real?fast loan

Check out: hsbc.com or maybe Ingdirect.com

Yes, internet banks are for real. Their rates are comparable to that of current short term cd%26#039;s, but there is usually no minimum balance or restriction on withdrawls.

You can transfer the money from the online account to your local bank account in (approximately) 3 days time. I don%26#039;t have the exact figure, but thats ballpark...

Everyone with a checking account should have an internet bank account. Period.

Are on line investment banks for real?

loan

A better option would be to buy CD%26#039;s(certificate of deposit).

and they pay as good as an interest as online banks if not better.

The problem with online banking is -

depositing....if you wire transfer they charge you

withdrawl...most of them do not have atm, and the ones that do have very few