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As the Los Angeles Times reported last week, some borrowers have been able recently to get 30-year fixed loans for just under 4%.
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The corporation has the authority to make direct loans to private enterprises without government guarantees and is allowed to make loans for other than fixed returns.
It is hardly surprising, then, that 82percentt of conventional home mortgages through the first 10 months of this year were for fixed rate loans, according to the Federal Housing Finance Board.
"It's a one-year fix, one particular set of loans for new borrowers.
Some of these programs provide business owners, who would not normally qualify for a loan, with a low interest, fixed term loan.
Barclays has brought out a loan fixed for 10 years at just 2.99%, while HSBC is offering a two-year fix at just 1.29%.
Take out a fixed rate loan if you need a single payment for the entire loan amount.
It was a Democrat who proposed a bill to grant loans for fixing the power grid and the Republicans who shot it down.
Those with subprime loans, he said, should try to refinance the loans now — perhaps even to an interest-only mortgage, since such loans typically carry fixed interest rates for 5, 7 and 10 years.
FOR many borrowers, adjustable-rate mortgages, or ARMs, are too risky, even though the interest on such loans is usually fixed for 5 or 7 years at a rate lower than that offered on 30-year fixed mortgages.
Long-term mortgage rates aren't rising, and the Fed's effect on short rates is being offset by loose lending practices such as interest-only adjustable-rate mortgages and by home equity loans at 6% fixed for 20 years.
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