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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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 Posted: Sat Mar 15, 2008 8:02 am Post subject: |
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| Too bad my teeth filled with zing(?) not gold. |
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SweetJade
Senior Member
Joined: 31 Mar 2007
Posts: 571
Location: somewhere in So. Cal.
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| Posted: Mon Mar 17, 2008 8:52 am Post subject: |
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 you guys are funny!!!
Well, I think, I'm better keeping them for mostly emergency!! 
_________________
SweetJade
...Knowledge makes arrogant, but love edified.
If anyone supposes that he knows anything, he has not yet known as he ought to know;
but if anyone loves God, he is known by Him. 1 Cor.8:1b-3 ~NASV~ |
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Baa
Joined: 25 Jul 2007
Posts: 46
Location: Newport Beach, California
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| Posted: Tue Mar 18, 2008 1:39 pm Post subject: |
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| SUNNY wrote: | Petch,
Just FYI. Fed rate is NOT directly affected fixed rate refi, but it does for ARM. The fixed rates mortgage is still decided by the market... that's why you won't see .75 dropped in 30-yr fixed (6.5apr for 30-fixed, and 7.3 for 30-jumbo-fixed) But we did see ARM dropped .75 right away. |
You are right...
Why mortgage rates are still heading higher
The Fed has cut interest rates again, but long-term fixed-rate mortgages may go up.
See all CNNMoney.com RSS FEEDS (close) By David Goldman, CNNMoney.com staff writer
Last Updated: March 18, 2008: 5:01 PM EDT
NEW YORK (CNNMoney.com) -- The Federal Reserve cut interest rates by three-quarters of a percentage point Tuesday, but don't expect mortgage rates to go down too. In fact, home loans could be heading higher.
Consider recent history: The Fed issued an emergency cut of short-term rates in early January, and then trimmed more just a few days later - but the 30-year fixed mortgage rate has responded by bouncing up from 5.6% to 6.4%.
The Fed's main tool is control over the short-term fed funds rate, which determines what banks charge each other for overnight loans. Long-term mortgage rates are mostly tied to the 10-year Treasury yield, which is determined by bond traders worldwide.
"There is a long disconnect between the fed funds rate and fixed mortgage rates," said Keith Gumbinger, vice president of mortgage and consumer loan information publisher HSH.com.
Inflation drives long-term fixed rates. When the Fed cuts short-term rates, the intent is to lower borrowing costs for corporations so that they'll invest and hire. But this economic growth can lead to inflation.
That in turn leads bond traders to demand higher rates on their long-term bonds - and that drives up mortgage rates too.
"Mortgage rates are determined by how fearful the market is of inflation," said Gumbinger.
The Fed began a series of cuts to its key interest rate last September, taking the rate to 2.25%, from 5.25%.
ARM borrowers may get help. There is more of a connection between Fed rate cuts and short-term and adjustable rate mortgages (ARMs). In fact, homeowners with ARM loans could see lower rates from further interest rate cuts.
Adjustable rate mortgages are pegged to a number of different indexes, including the one-year Treasury yield and the international Libor, or London Interbank Offered Rate, which tend to move with the Fed funds rate.
With Tuesday's rate cut, the cumulative effect of the Fed cuts could entirely offset what would have been a significant rate reset for many homeowners.
For instance, a borrower with an adjustable rate of 4.5% could have faced a rate reset up to 7.5% before the Fed started cutting rates in September. Before the rate cuts, that homeowner would have seen an increase of $370 in monthly payments on a $200,000 loan.
But after Tuesday that rate could reset only a little higher. And for some, the rate might not go up at all - and may actually drop - according to Greg McBride of Bankrate.com. "The Fed rate cuts far are more significant to [borrowers with ARMs] in terms of staving off delinquencies on loans," he said.
Long-term rate solution. Sending long-term fixed rates back down will be more complicated than fixing inflation, because the continuing housing crisis is also exacerbating the rise in long-term fixed rates.
Generally mortgage rates are about 2 percentage points higher than the yield on the 10-year Treasury, which currently stands at 3.29%.
But the housing market is in such turmoil that rates are even higher right now, with lenders concerned that borrowers will not be able to pay back loans.
"The 30-year fixed rate mortgage should be at 5.5%, but instead it's above 6%," said McBride. "The 30-year jumbo loan [a large mortgage that is not federally guaranteed] is a full two percentage points higher than it should be."
So for long-term fixed mortgage rates to go down, the Fed must successfully make banks more willing to lend again.
First Published: March 18, 2008: 9:25 AM EDT |
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SUNNY
Silver Member
Joined: 27 Feb 2008
Posts: 129
Location: U,S and A... (Kazakhstan) U,S and A... U,S and A... U,S and A... U,S and A... U,S and A... U,S and A
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| Posted: Wed Mar 19, 2008 8:33 am Post subject: |
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| Petch wrote: | Gold is already above $1,000/oz. It is at its high right now.
Historic has shown that once the economy recover, gold price will drop. |
Petch,
My 'Prophet' (sorry, I can't tell you who..) told me that gold will hit $1200/oz by end of this year... let's see...
_________________
God answer prayers in 3 ways:
He said yes and gives you what you want.
He said no and gives you something better.
He said wait and gives you the very best in His own time
http://www.facebook.com/profile.php?id=682417822 |
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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| Posted: Wed Mar 19, 2008 12:01 pm Post subject: |
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Your "phophet" could be right! By looking at it, our economy will not be
recover any time soon.
My dad just bought tons of silver dollars from an auction. He got them at a very good price...almost closer to the face-value! |
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SUNNY
Silver Member
Joined: 27 Feb 2008
Posts: 129
Location: U,S and A... (Kazakhstan) U,S and A... U,S and A... U,S and A... U,S and A... U,S and A... U,S and A
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| Posted: Wed Mar 19, 2008 8:57 pm Post subject: |
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Good for him 
_________________
God answer prayers in 3 ways:
He said yes and gives you what you want.
He said no and gives you something better.
He said wait and gives you the very best in His own time
http://www.facebook.com/profile.php?id=682417822 |
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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| Posted: Thu Mar 20, 2008 7:34 am Post subject: |
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Well...that because we can not afford to buy Gold! Silver should do it! ha ha ha...  |
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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| Posted: Fri Mar 21, 2008 8:49 am Post subject: |
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Yesterday the Gold price drop $80/oz. Now it is at $935/oz in GoldBar.
Well...my dad said he would be interested to buy some now.
I shop around in the net and found this trading company which I planing to use.
Blanchard and Company, Inc. Contact Information
Phone: 1-888-413-4653
Customer Service Hours:
7 a.m. – 7 p.m. CST, Monday through Friday
Mailing Address:
P.O. Box 61740
New Orleans, LA 70161-1740
Physical Address:
909 Poydras Street, Suite 1900
New Orleans, LA 70112
Anybody have any recommendation of the broker.
Most likely I will buy the Bufforow Gold coin which trade at $960.68 yesterday market. Today the market is close for Easter Holiday.
some interesting article...
Why Buy Gold
Why buy gold indeed! Nations and governments come and go. Currencies come and go. Economic conditions come and go. Inflation and recessions all come and go. Various bartering systems come and go. Stocks and shares and the ancillaries to those, futures etc, all come and go. But gold lives on and persists throughout the centuries and continues to be a stable resource for man.
Additionally gold does not tarnish, gold is welcome anywhere in the world. You can buy gold and sell it. Keeping assets in the bank means one gets a paltry interest rate (if that) which is generally eaten up by bank charges and inflation as each year the dollar is worth less than the year before. But gold. Ah! Gold does not hit you with bank charges and is not subject to inflation. Gold does not wear out and is not subject 9mostly) to taxes. No. Gold is a stable asset that keeps its purchasing power.
In fact, regardless of the current economic situation, gold remains ... as good as gold!
So the time to buy gold is always now, regardless of when now is. The time to sell gold is ... never! And as to how much gold to buy? Well, as much as you can possibly lay your hands on! |
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kohkerdsri
Gold Member
Joined: 03 Apr 2007
Posts: 211
Location: Irvine
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| Posted: Fri Mar 21, 2008 9:02 am Post subject: |
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or you can buy Gold stock "GLD" which basically represent Gold Value.
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http://members.cox.net/kohkerdsri |
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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| Posted: Fri Mar 21, 2008 3:49 pm Post subject: |
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Good to know about the commodity stock.
I just learn something new today after talking to the gold broker.
He said Government can take your bullion gold coin back if country are in crisis.
Only Gold sovereign coins that no need to report tax and government can not take it back.
But it sell now at about $1333/oz compare to US Bullion gold coin $960/oz. |
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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| Posted: Wed Mar 26, 2008 8:01 am Post subject: |
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I just found a local precious stone broker right here near my business.
MONEX PRECIOUS METALS
http://www.monex.com/about/index.html
They are in Newport Beach, open more than 40 years already.
I guess they are a trust-worthy company.
If anyone would be interested in invest in precious metals,
Monex should be one on the list. They have a live quote in their website too. Cool! |
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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| Posted: Tue Apr 01, 2008 1:35 pm Post subject: |
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| PRice of Gold Bullion is down to $883/0z. now. |
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Vee
Silver Member
Joined: 31 Mar 2007
Posts: 184
Location: Anahiem, CA
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| Posted: Wed Apr 02, 2008 12:03 pm Post subject: |
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| Oh no! I think we just bought some. P'Petch....so quite. You didn't tell me in person about this yesterday. |
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Petch
Senior Member
Joined: 03 Apr 2007
Posts: 936
Location: Anaheim, CA
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