Retail Sales Rise better than expected, 1.3%, in October.

The report came as a surprise because retailers have reported bad results for the start of the holiday shopping season. Consumer spending factors to 70 percent of overall economic activity.

“But retail sales rose 1.3 percent last month, after a 1.1 percent October gain”, the Commerce Department said Friday. It was the biggest advance since sales jumped 2.4 percent in August, and more than double the 0.6 percent increase economists had expected.

Excluding autos, retail sales rose 1.2 percent, triple the 0.4 percent advance economists expected.

Numbers courtesy of Yahoo! Finance.

The mortgage interest rate market will actually react negatively to this, as shown by the 30 year bond trading now at 4.54% as of this post.  I keep reminding that as recent as last week, this bond was trading at 4.21%.  Major jump. 

The economic news is still relatively anemic, however, maybe we will recover, and housing will follow shortly afterwards.  I will say, however, no one thinks that will happen soon, even myself.

More Later!

Home equity loans are always found to be tempting for many homeowners for a number of reasons, like the interest is tax deductible, rates are usually lower than the other types of loans, and most importantly easy to obtain. But there can be disadvantages, so it is important that you should know what they are to be able to determine the best home equity loan for you.

To choose for the best home equity loan that is right for your specific situation will depend on two things: what do you need to use the money for how do you want to receive the money? Whatever your purpose in considering home equity loan, determining the different ways how you can make the best of your home equity into cash can greatly help you in choosing for the best home equity loan for you. And, these are:

o Refinancing. When you take a cash-out refinance, it means you are refinancing your existing loan to a larger amount than what you owe and taking the difference in cash. You will receive your money in lump sum and you might want to use the cash for home improvements or debt consolidation. If the mortgage interest rate on your existing home loan is higher than current rates, then it makes no sense to refinance this way.
o Home equity loan. If you have a great mortgage interest rate and don’t want to refinance your existing mortgage, a home equity loan might be the key. A home equity loan is a second loan that you can take out in addition to your first mortgage. It allows you to borrow cash from the equity of your home.
o Home equity line of credit. A home equity line of credit, or HELOC, is different from the two options described above. It works like a checking account or credit card except that it uses the equity in your home as the revolving line of credit. You will only pay when you use the money. However, unlike any other credit cards, the interest is usually tax deductible. A home equity line of credit can be a great choice if you need to access your money repeatedly.

It is said that no single best home equity loans for anybody, because it would put your home on the line. But, under certain circumstances that you will need to loan for a bigger amount to be used for important things and that you know you can make the payments on time, then you may consider home equity loan. But then again that does not end there. Among the three types of home equity loans, you still have to choose what is best for you. And to be able to do that, choose the one that best serve your purpose for borrowing the money in the first place.

For more information about home loans and home mortgages go to: http://home-loan-mortgage-refinance.info

Mortgage interest rates have been rising and falling sporadically during the past 20 years. The movement of mortgage interest rates is inversely proportional to the status of the economy. As a general rule, mortgage interest rates are low when economy is good. When economy goes down, the feds would jack up mortgage interest rates in an effort to stimulate the economy.

Only last month, mortgage interest rates have jumped more than a point. This increase in mortgage interest rates has significantly reduced the number of people willing to refinance their homes.

According to experts, refinancing only makes sense if the mortgage interest rates are low. And with this recent rise of mortgage interest rates, it is only logical that people are balking at the idea of re-mortgages. The total increase of mortgage interest rates was over 6 per cent at the end of last week. Although this mortgage interest rate is the highest so far this year, it is still lower than where it was a year ago. Last year, the mortgage interest rates of 30-year fixed rate loans were averaging nearly 6.5 per cent.

To refinance or not to refinance?

It is understandable that some hesitation is at hand when it comes to refinancing, especially since it has been found that mortgage interest rates are rising. But still, it might not be too late to refinance. If you fall into one of these categories, the apparent rise of mortgage interest rates won’t affect your refinancing plans one bit.

Try to look at your mortgage interest rate right now. Compare your current mortgage interest rate with today’s mortgage interest rate. If you find that today’s mortgage interest rate is one half lower than your current mortgage interest rate, then you should probably try to refinance. Remember that the limit to refinancing is having a mortgage interest rate that is at least ½ of a percent lower. Mortgage interest rates higher than that is not worth the effort or the risk.

Aside from making comparisons with mortgage interest rates, you might also want to ask yourself how long you plan to keep your house. If your plan is to stay in your home for only five years or less, then refinancing by getting a fixed rate loan might be a good idea. This would allow you to save on your lowered mortgage rates.

Another option is to get an adjustable rate mortgage. If you’re planning to stay in your home for much longer than five years and you’re willing to risk having mortgage interest rates rise, then an adjustable rate mortgage will enable you lower down your mortgage interest rate. Adjustable rate mortgages usually have lower mortgage interest rates compared to fixed rates. After the end of the first year of your adjustable rate mortgage, your mortgage interest rates would depend on the rise or fall of prime rates. It’s a risky business but it could allow you to save some if you’re willing.

For example, the mortgage interest rate of 30-year fixed rate loans is about 6.2 per cent. That’s high but you can still save something since this is still a bit lower than last years mortgage interest rate of 6.5 per cent. However, if you get an adjustable rate mortgage, your savings are multiplied. An adjustable rate mortgage for five years has a mortgage interest rate of 4.5 per cent for the first year.

For more information about home loans and home mortgages go to: http://home-loan-mortgage-refinance.info