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Planet Earth Cuts Interest Rates

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Six central banks of the world did a coordinated interest rate cut to try to help the credit crisis. The group included the US and the European Central Bank. What does this mean for your wallet? It's possible, at some point, that you'll be able to get or renegotiate loans or mortgages to a better interest rate, and you're like to see saving account rates drop, but given the apocalyptic economic climate, don't count on it happening anytime soon.

[WSJ] (Photo: dboy)

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It's possible that you'll be able to get or renegotiate loans or mortgages to a better interest rate

Has anyone had any luck *negotiating* a lower rate on a mortgage versus refinancing? This seems like an attractive option to get a few tenths of a percent shaved off versus dealing with a full-on refi.

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Ben, I take it you mean't coordinated interest rate cut, not hike.


It'll take a while for this to flow through to consumers - if at all. Rate cuts of this ilk, especially in the current situation, don't necessarily translate to any kind of direct change for consumers.

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Closing the barn doors won't help if the horses have already escaped.

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@GTI2.0:


My broker actually offered to do this for me as a free service if the rate went down a point (and it has).

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Mortgage rates already dropped here same day.

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Well, I'm just glad my Glorxian bank still has a high interest rate.

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Has anyone actually been able to negotiate a lower interest rate on their existing mortgage? I've never heard of that working.

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If the bailout didn't help us so far, the interest rate cuts aren't either. The only way we will be saved is when we decide to invest some money helping those under foreclosures and putting some money in education. Also did you guys know that all the bad mortgages / forclosures combined are only worth 150 billion dollars?! Why not just give them the money so we can "unfreeze" the economy!

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I have only seen loans negotiated lower when a government agency buys out an existing loan, basically taking it over, so that the realty can be used for public use. That is more of a governmental police power situation than anything else.

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i should call the people who did my loan....

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@B: And Earth friendly debit cards?

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"and you're like to see saving account rates drop"
Showing my ignorance here a bit (hey, I'm new to the whole having/caring about things like this) but would this mean it's a better time to take some money from a current "high yield" savings and move it into things like shorter term CDs as a hedge? I have a little bit of savings that I need to be relatively liquid so I can't toss it into a 1 year CD, but I could move some if that's what we're looking at.

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@Kaisum: They charge three klaatlus for "out of system" ATM withdrawals. It's a pain, but still better than dealing with Earth banks.

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@mightydarv: CD rates will drop as well.

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"Six central banks of the world did a coordinated interest rate cut to try to help the credit crisis."


No posts about the one world order or illuminati yet? Amazing- and I had gotten my tinfoil hat all ready.

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@mightydarv:


Right now, 1 year CD's are paying about .5% above what some high yield savings accounts (HYSA) are. The Fed may still lower rates at subsequent meetings. They are relucatant to since low interest rates are inflationary for many reasons.


For the normal investor who has money parked in cash. unless you are talking about tens of thousands of dollars, it's not worth it in my opinion to tie a bunch of money up in 1 year CD's.

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If anyone has any experience as a farrier, atilliator or castellan, they are welcome to join me in my walled compound.

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Wow... I should have waited to try and refi my 2 car loans now. My wife and I have perfect payment history with our car loans for the past year and a half.. we decided about a month ago to try and refi our car loans only to have them denied by our bank. Should I have only tried for one refi?

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what makes me sick is that the only debt I have is my damn student loan. Since I'm in school and it's set by the fed gov annually, they won't let me negotiate a lower rate.

Any tips for getting a < 1% rate on a student loan?

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The United States of America: too big to fail

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@mcdonaldave: I don't know where you got your figure from, but from what I understand it's around $1.3 trillion.

I could be wrong though.

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@postnocomments: Brilliant. I demand that a t-shirt be made!
(For those America-haters, they can buy a version with a "?" after it)

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ING just lowered their Orange Savings rate from 3.0% to 2.75 :( Well, at least it's still three times the national average! and they totally could have lowered it half a percentage point like the Fed just did.