The Investment Scientist

Posts Tagged ‘mortage rate

Last week, the Fed announced another round of quantitative easing (QE3).

This time around, they plan to buy $40 billion worth of mortgage-backed securities with created money until the employment picture improves.  Compared to QE1 and QE2, QE3 is open-ended.

How does this affect your personal finances?

Read the rest of this entry »

Is Refinancing Right for You?

Do you see any evidence of superior investment strategy for the last five years? Seems all is correlated and all is going nowhere.

This is a question I got from a reader of my newsletter.

I hate to be impolite, but I think he is focusing on the wrong thing. Yes indeed, over the last five years, the market has given us one disappointment after another – first the financial crisis in the US and now Europe.

There is a silver lining in all of these crises, though. Mortgage rates are at an all-time low. Five years ago today, the 30-year mortgage rate was 6.75%; now it is 3.5%. If you have a $400k mortgage on your house, do you know how much you save if you refinance?

Read the rest of this entry »


Author

Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC.

Twitter: @mzhuang

Error: Please make sure the Twitter account is public.

Archives

<span>%d</span> bloggers like this: