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My financial situation is up in air and with new regime in White House so  I need advice. I currently am in year 5 of a HELOC which I owe $93000 . I don't have a mortgage as I got divorced and paid my ex off for half the house with this. The current rate is 2.99 % but will be going up in January due to rate hikes. I just bought a new car as I gave my old car to daughter who just graduated from college and since I was unable to help her with college I thought that would help. So I have a $15000 loan I took out for that at around 3.5 % for 5 years. I am 58 years old with no real timetable of how long I want to stay in house that is worth $300,000. The most would be 10 -12 years but could be 5 . Should I refinance  both loans into  a fixed mortgage ?

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The Fed has little control over consumer interest rates.

xoneinax (Nov. 16, 2016 @ 8:38p) |

The bond market controls interest rates, not the Fed.

xoneinax (Nov. 16, 2016 @ 8:39p) |

A December hike is already reflected in current interest rates.

xoneinax (Nov. 16, 2016 @ 8:41p) |

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brucesprings said:   My financial situation is up in air and with new regime in White House...
Did you work for Obama?  If not, why is this relevant?

With no income information, it is hard to give any advice, but yes, unless you have the funds to pay off the HELOC in full, it probably makes sense to convert that to a 5 or 10 or 15 year amortizing loan.  Pick a term that gives you a payment you can comfortably afford.  I would not roll the car note into it.
 

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It has nothing to do with Obama but more to do with article I read this morning saying Trumps relationship with Yellen is not good and expect rates to go up as inflation should go up which the fed would combat with higher rates. I f it was gradual rate I would stay in HELOC and try to pay down at good pace if I could

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Couldn't help daughter with college so you bought (financed) a new car? You're doing it wrong.

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This is about you, not the political situation. Rates can really only go up from here... the only question when it starts and how quickly it goes. Given the tone of your post, you're pretty risk averse... so, refinance... give your time horizon, that's probably your best play in any case.

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Its probably a good idea to long in a long term mortgage at 3.x%.

Doesn't matter who's in the white house.

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BigFatCat said:   This is about you, not the political situation. Rates can really only go up from here... 
  That's been said for several years.  Almost a decade now?  And they continued to go down further (to the all-time lows earlier this year).

Mortgage rates, at least, seem to have moved up quite a bit immediately after the election.

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During Bush they went down, during Obama they went up, who knows where they will go under trump.

Refi if the rates are what you want, refi AGAIN if they go down. That's the best advice.

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brucesprings said:   Need some expert opinionsExpert opinion: Your thread title SUCKS!
  

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jerosen said:   Its probably a good idea to long in a long term mortgage at 3.x%.

Doesn't matter who's in the white house.

 
Those rates are last week's news. And it does matter. The 10yr seems to think so.

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cherry3m said:   Couldn't help daughter with college so you bought (financed) a new car? You're doing it wrong.
  
brucesprings said:   I just bought a new car as I gave my old car to daughter

New car for OP, old car for daughter.

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brucesprings said:   The current rate is 2.99 % but will be going up in January due to rate hikes. 
  What's your crystal ball say for the price of scrap metal? I've got a few cars to scrap and don't know if I should hold on to them until the spring or get rid of them now. Scrap prices have been in the toilet for a year now so I'd like to know the future.

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My reasoning for this OP was I guess how fast do you think the fed will go and could we see many rate hikes from past experience. The article I read focused on inflation and the likeness of fed hikes due to that. If we only have the December rate hike and only one more next year I would still be at a good rate. As far as putting car loan into mortgage I was thinking I might be able to get tax break from interest.

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nm

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nm, haven't had coffee yet

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brucesprings said:   My reasoning for this OP was I guess how fast do you think the fed will go and could we see many rate hikes from past experience. The article I read focused on inflation and the likeness of fed hikes due to that. If we only have the December rate hike and only one more next year I would still be at a good rate. As far as putting car loan into mortgage I was thinking I might be able to get tax break from interest.
  The reason for my answer is , no one can predict the market.  Unless you are part of the illuminati, and even then you know the market but can't 'predict it' (As you are causing the market flux).  Just do what you think is best now and if you are wrong, refi, if you are right, you are a winner. 

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Agree. Fixed rate mortgages are for when you want certainty in your monthly payment, not really for speculating on the future of rates. Unless you have a crystal ball or something.

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forbin4040 said:   During Bush they went down, during Obama they went up, who knows where they will go under trump.

...

  
Mortgage rates averaged ~5% in 2009 and are were ~3.3% a couple weeks ago.    Rates have trended down under Obama.
 

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brucesprings said:   It has nothing to do with Obama but more to do with article I read this morning saying Trumps relationship with Yellen is not good and expect rates to go up as inflation should go up which the fed would combat with higher rates. I f it was gradual rate I would stay in HELOC and try to pay down at good pace if I could
  People actually believe that inflation goes up because the president has a "not good" relationship with the Fed chair who will then raise rates to fight inflation? 

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No. What I read was Trump will get prices to rise on goods to cause inflation which in turn will make Fed raise rates.

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brucesprings said:   No. What I read was Trump will get prices to rise on goods to cause inflation which in turn will make Fed raise rates.
  What you read today isn't what happens in a month.  

Look at Trump's transitional team, Christie was whoring himself out to Trump since he lost the nomination, now Christie is out and Pence has to do the work.  That can change again in 30 days.
You cannot predict how the rates are based on the president.

So do what you need to do, and fix it next year if it is wrong.

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brucesprings said:   It has nothing to do with Obama but more to do with article I read this morning saying Trumps relationship with Yellen is not good and expect rates to go up as inflation should go up which the fed would combat with higher rates.The Fed has little control over consumer interest rates.

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brucesprings said:   will get prices to rise on goods to cause inflation which in turn will make Fed raise rates.The bond market controls interest rates, not the Fed.

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brucesprings said:   If we only have the December rate hike and only one more next year I would still be at a good rate.A December hike is already reflected in current interest rates.

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