Mr. Kessler asks an important question:?”

Since we are printing up all of the money that doesn’t exist, most economist agree that the threat of hyper inflation is coming down the road and either we head it off now or get eaten by it later.  Interest Rates vs. Hyper Inflation

Kessler begins thinking about how the Federal Reserve might go about heading off inflation as the economy begins to recover:

But how? Why, just do the exact opposite of what is in action now.Of course, you raise the interest rates. By sopping up dollars by not only selling Treasuries, but also selling all those mortgage-backed securities and other toxic stuff bought from Bear Stearns, AIG, Fannie and Freddie, and everyone else. By removing all the backstops it put in for the commercial paper and other markets to keep them functioning. But won’t that have the effect of slowing the economy? You can bet on it. This is a tightrope act. Getting all that toothpaste back into the tube will require the skills of a surgeon and the moxie of a middle linebacker, and someone deaf, dumb, and blind to congressional meddling. And worse, this is something that has never been done before.  What is a Mortgage Planner?

How this is emplimented is going to to vital to the future of the mortgage business and mortgage rates. All assume that it will be nearly impossible to do perfectly. When there are interest rates at 10% or higher, who really wins?

As the Federal Reserve meets for FOMC this week the question of inflation is beginning to re-enter the discussion.

Federal v. State Banking Powers

Here is another issue that may have strategic impact on the future structure of the mortgage industry: “Can the US Treasury Shield National Banks from New York State Law?”

Four years ago, Eliot Spitzer, then the New York attorney general, asked several national banks to explain why they were disproportionately charging blacks and Hispanics high interest rates.

Instead of an answer, he got a lawsuit. The banking industry tries to get the fed courts to get rid of anitdiscrimination laws.  Mortgage Interest Rates

On Monday, the U.S. Supreme Court will hear New York’s appeal. If the state wins, it would mark a break with decades of precedent that mostly favors the powers of the federal government and open a new era for 50 state regulators to play a bigger role.

A shift like this, although unlikely based on past Federal judicial precedence would dramatically shift the structure of banking.

Are You Considering Refinancing?

Homeowners who are considering refinancing their home may have many options available to them. It can be overwhelming for a homeowner to take into account all the many different refinancing opportunities available to them. However, it does not need to be a difficult process. There are a few easy to follow tips, that can help homeowners n the best process for their particular situation. First the homeowner should determine their refinancing goals. Next the homeowner should consult with a refinancing expert and finally the homeowner should be aware that refinancing is not always the best solution.

Establish Personal Goals for Refinancing

It is important for homeowners that are considering refinancing to understand the reasons or benefits they hope to gain from that process. Each person’s situation is different and the goals they want to accomplish will reflect their individual needs. However, the main thing to think about is that the homeowner will be able to reach their financial goals through this process. Even though there is no ’right’ or ’wrong’ ways to answer why a person should make the decision to refinance, there certainly are common advantages to doing so. Some of the advantages are:

1) Reducing monthly mortgage payments 2) Consolidating existing debts 3) Lowering the amount of interest paid over any long term loans 4) Repaying the loan quicker 5) Gaining equity quicker

The reasons mentioned above are not the only factors to consider for refinancing your home, they are certainly some of the more popular reasons people decide to refinance. They are included in this article for the purpose of getting people that are considering refinancing to begin thinking about the advantages. Perhaps you already find one or two of the reasons listed above, fit well with your financial goals or you may have other motives for refinancing. The reason for mortgage refinancing, is not as important as determining your ultimate financial goals through this process. This is because a homeowner, or even a financial advisor, will have a difficult time determining the best refinancing option available if he does not know the goals of the homeowner.

Seek Advice from a Refinancing Professional

Once a homeowner has figured out why they want to refinance, they should consider meeting with a refinancing expert to determine the best refinancing strategy.

Homeowners that have sufficient experience and understand the many details surrounding refinancing, may decide to forgo meeting with a financial advisor. However, this is not recommended because even the most educated homeowner may not be aware of the newest refinancing options being offered by lenders.

It can be highly benefit to be aware of the many new options because they could make a significant difference on your decision.

Not Refinancing can be a Feasible Possibility

Many homeowners that are in the process of considering refinancing, often come to realize the importance of determining the different options that would work best for them. Still, some of these same homeowners may not even know that given all the options, it is possible they do not need to refinance. For each refinancing option considered, the homeowner should determine the estimated monthly payment, and amount of interest paid during the course of the loan.

They also need to consider the amount of time the homeowner will have to remain in the home to recoup closing costs associated with refinancing. Homeowners should also determine the values for the current mortgage. This can be very helpful for comparison purposes. By comparing competitive mortgage interest rates, homeowners will be better enabled to make the best decision on which option to take. While the mortgage crisis undermines the entire economy, you can get the tools and advice needed to compare mortgage rates and refinancing rates by using one of the many services available today.