Colorado-Home-Mortgage-Colorado-Refinance-Mortgage.com
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Home Mortgage Loan And Home Equity Loans
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Home Equity Loans
Looking to tap into your equity? There are several options and a few things to consider when deciding which is right for you. If the interest rate on your mortgage is higher than current rates, it may make better sense to refinance and take a lump sum of cash from your equity. You'll simply refinance your mortgage to a larger loan amount and take the difference in cash. A home equity loan is essentially a second loan that you take out in addition to your first mortgage. Commonly referred to as a "second mortgage," a home equity loan allows you to tap into your equity to get cash without refinancing your first mortgage and usually in a lot less time. A home equity loan is a good choice if you'd like your cash in a lump sum and have a great rate on your first mortgage. A home equity line of credit, on the other hand, is very similar to a credit card except that it uses the equity in your home as the revolving line of credit. You pay only if and when you use the money. But, unlike credit cards, the interest is usually tax deductible.* You can get a lump sum at closing or only part of your money and draw on the rest when you need it. Unlike a home equity loan or a refinance, you can get a home equity line of credit in as little as ten days. A equity line is a good choice if you'd like ready access to your equity. Franco said, "The outlook for the holiday retail season is now fairly bleak. Without the likelihood of a pickup in consumer spending, an already weak economic recovery could weaken further." Sonja Rudd, analyst at Wall Street Capital Funding LLC in Weston, Florida, said, "Consumer confidence is showing a 9-year low. However, consumers may say they are not confident, but they are still spending like there is a party going on somewhere. Autos, homes and durable goods are still holding their own in monthly consumer tallies. "I guess with zero-percent financing being extended by GM, Ford, and other major auto makers, along with low mortgage rates, enough consumers have spent in these two areas to help keep the economy afloat," Rudd added. McAllister said, "With the Fed biased to ease, further economic weakness will likely move the Fed to lower interest rates in a effort to preclude the domestic economy's slipping back into a recession. Some analysts have begun to argue that the central bank committee may decide on a more dramatic move and lower fed funds by 50 basis points." Prudential Securities Treasury analyst Michelle Girard agrees with McAllister's view of a 25-basis-point cut and not with the 50-basis-point assessment. "With fed funds at 1.75 percent, the Fed's options are limited. If it were to choose to lower interest rates by 50 basis points and the economy continued to weaken and the need for additional easing continued, the Fed would have even less maneuverability," Girard said. "The Fed believes that much of the economy's malaise is due not to a lack of liquidity but to uncertainties over which it has no control -- such as political tensions and corporate governance," Girard said. U.S. preparations for military action against Iraq are adding to investors' concerns. The Blue Chip Economic Indicators survey released last month showed the economy may expand at a slower pace through mid-2003 than projected just a month earlier, as a slide in stock prices damps consumer and business spending. Economic growth will slow to a 2.2 percent annual rate in the final three months of this year, 0.7 percentage point less than expected a month ago, according to the consensus estimate of 51 economists in the survey. The 3.1 percent growth pace expected for the first quarter of next year is lower than the September forecast of 3.4 percent. And, the nation's economy, as measured by the gross domestic product, expanded at a slower-than-expected 3.1 percent annual rate in the third quarter following a 1.3 percent rate in the second quarter, according to the Commerce Department. Economists had expected third-quarter growth of 3.7 percent.
Although the economy grew at a healthy clip during the quarter, retail sales and the strength of the manufacturing sector suggested the economy slowed toward the end of the quarter. Many believe the economy is growing at an even slower pace in the fourth quarter, at a pace of about 2 percent to 2.5 percent.
The Federal Open Market Committee has eight regularly scheduled meetings per year to direct the conduct of open market operations by the Federal Reserve Bank of New York in a manner designed to foster the long-run objectives of price stability and sustainable economic growth.
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