Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17
Q4 Pivot View for Stocks and Gold - 14th Oct 17
Gold Mining Stocks Q3’17 Preview - 14th Oct 17
U.S. Mint Gold Coin Sales and VIX Point To Increased Market Volatility and Higher Gold - 14th Oct 17
Yuan and Gold - 14th Oct 17
Tips for Avoiding a Debt Meltdown - 14th Oct 17
Bitcoin Hits New All-Time High Above $5,000 As Lagarde Concedes Defeat and Jamie Demon Shuts Up - 13th Oct 17
Golden Age for GOLD, Dark Age for the Stock Market - 13th Oct 17
The Struggle for Bolivia Is About to Begin - 13th Oct 17
3 Reasons to Take Your Invoicing Process Mobile - 13th Oct 17
What Happens When Amey Fells All of a Streets Trees (Sheffield Tree Fellings) - Video - 13th Oct 17
Stock Market Charts Show Smart Money And Dumb Money Are Moving In Opposite Directions—Here’s Why - 12th Oct 17
Your Pension Is a Lie: There’s $210 Trillion of Liabilities Our Government Can’t Fulfill - 12th Oct 17
Two Highly Recommended Books from Bob Prechter - 12th Oct 17
Turning Point Nations On The Stage - 11th Oct 17
The Profoundly Personal Impact Of The National Debt On Our Retirements - 11th Oct 17
Gold and Silver Report – Several Interesting Charts - 10th Oct 17
London House Prices Are Falling – Time to Buckle Up - 10th Oct 17
The S&P Is A Bloated Corpse - 10th Oct 17
Are Gold and the US Dollar Rallying Together? - 10th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

How to get "hundreds of dollars" of Extra Cash per Month, for 30 Years

Housing-Market / Mortgages Dec 31, 2008 - 11:45 AM GMT

By: Marty_Chenard

Housing-Market Best Financial Markets Analysis ArticleNOTE: The markets are closed tomorrow.  A very Happy New Year to all of you from Cindy and I.  Many pit traders will be out on Friday.  Schwab gave us indications that they would be on limited staff Friday and would reroute all Friday (Jan. 2nd.) orders through the Canadian exchanges.  With that said, we may either take Friday off or do an abbreviated update.


Something to think about in early 2009 ...

Forget an Obama one year tax rebate ... how about a monthly change in your personal cash flow of $135 to $951 per month, each and every month for the next 30 years?

That's what the Fed is trying to deliver in their attempt to drive down 30 year mortgage rates to 4.5% or even 4.25% 

Take a look at today's "Mortgage Savings" chart below to see where you might fit in:

First, let's assume that a person currently has a 6.5% fixed, 30 year mortgage.  Thirty year mortgage rates should hit 4.5% in the coming weeks . (It was announced last night that the Fed will begin purchasing $500 billion in Fannie Mae, Freddie Mac and Ginnie Mae securities early in January.)

Let's next assume that in the coming weeks, 30 year mortgage rates drop to 4.5%.  How much could you save per month if you refinanced?

Depending on much you borrow, the savings could be as much as $679 per month on a $500,000 mortgage.   To see how much you could save on different amounts, see the chart below.

The important point here, is that the monthly savings would be for the life of the mortgage ... 30 years.  
How much would that be per year on a smaller $200,000 mortgage?  Well, it would be a savings of about $271.78 per month, or $3,261.6 per year ... every year for 30 years.   If you are sitting on a mortgage at a higher rate, this could be a smart 2009 financial move. 

Final comments:  I expect 30 year mortgage rates to drop to 4.5% with 1 point or less being charged.  Many of you will be able to negotiate the "point charge" if you are dealing with a local bank and have a good credit record.   Regarding a 4.25% possible rate:  I think that will be a push.  Even if we do get down to 4.25%, I expect that the banks are likely to raise the points charged at that level, so taking a 4.5% opportunity may be your best bet when it comes up.  (Some solid, creditworthy borrowers with large down payments or lots of home equity are already reporting that they are seeing 4.5%.) 
* See  below for today's stock market update ...

We are now at the last trading day of the year.  As we approach the end, what does the basket of Institutional "core holdings" look like?

Below is an Institutional Index Point & Figure hourly chart.  Two things are noticeable right now.

First, the Index of their very best "core holdings" have been in a trading range for the past 3 weeks. 

Second, at yesterday's close, the index had worked its way up close to the half-way point of the range and, it will be facing an important resistance today and/or Friday.  If it can break above that level, then the index (and the stock market) will move up to test the top of the index's trading range. 

At that point, if the strength in the market has an appreciable improvement, then the Institutional index will have a chance of breaking through the trading range's upside resistance.  (This chart is being posted daily on our paid subscriber site.)

*** Feel free to share this page with others by using the "Send this Page to a Friend" link below.

Send This Page To a Friend

By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools.  As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL.  He is an advanced technical analyst and not an investment advisor, nor a securities broker.

Marty Chenard Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife