Freeper help requested- LOW INTEREST LIBOR HOME MORTGAGES?

self

[Atlas Sneezed]

Thirty year fixed......5.37%

One year CD.......2.29% (taxable).

Not even close to break even.

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True, but if think rates may rise from their historically low levels, you can watch the CD number rise a LOT as the loan rate remains fixed. Look at the inflation going on now. Rates are poised for a big rise, perhaps with major inflation in decades ahead.

[wtc911]

True, but if think rates may rise from their historically low levels, you can watch the CD number rise a LOT as the loan rate remains fixed. Look at the inflation going on now. Rates are poised for a big rise, perhaps with major inflation in decades ahead.....

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The highest one year CD rate from 1991-2004 was a whopping 6.1%. Might as well put your money in the mattress.

Now, if you have a million that you want to put into a CD you can do better through private banking but if you're sitting on seven figures in cash you're not likely to be concerned about a mortgage.

[GovernmentShrinker]

1) CD rates are headed up

2) Why would anyone offset at 30 year mortgage with a ONE year CD -- longer term CDs already get much higher rates. Might make sense to 1 year CDs for a year or tow, but once rates go up significantly, time to lock in a long one.