IF we default and it affects interest rates on mortgages, car loans,

[gateley]

credit cards -- would that affect current loans/payments, or if you were to get a NEW mortgage, car loan, new CC purchases?

I'm just wondering, if this does occur, if all the Congress's personal payments will go up NOW, too.

Thanks!

[Brickbat]

1. I'd say look at your contract -- not that it means much anymore.

[villager]

2. then people need to organize a fuckin' payment strike, and leave the banksters holding the bag

...since they were the ones who financed the Teabaggers in the first place...

[RKP5637]

4. The people have the power, it's just not used. Eventually we will lose it. n/t

[elleng]

3. Depends on terms of various loans, like a 30-year non-variable, no change.

Credit cards, >>>>>. HOPING congress doesn't get paid, like other Fed employees.

[roamer65]

5. On credit cards, it would affect all balances subject to a variable rate.

[B Calm]

6. If you have loans, I would be real concerned!

[gateley]

7. I'm lucky in that I have no loans, mortgages or credit cards,

I'm just wondering how and who it would impact. If it affected current loans and credit card balances, then every member of Congress would get nailed, too.

[SheilaT]

8. It's not going to affect anything that is at a fixed

rate.

On the up side, interest paid on things like savings accounts and CDs might possibly go up. Right now those rates are in the neighborhood of one percent or less.

[NotThisTime]

9. What about a home purchase that has been approved the rate locked in by the buyer but closing isn't

until September? We're the sellers in this case... I'm a bit worried...

[dixiegrrrrl]

11. I would be worried too.

Not that your locked in rate could change, but that your buyer might be thinking of backing out, depending on how the current situation affects him.

Also, when inflation DOES take off, fixed rate payments will be made in "cheaper" dollars.

But savers might make better interest, if they can find a trustworthy place to put their money.

[NotThisTime]

12. Ugh, thanks... they have until 8/10 to cancel the P&S with little penalty

[dixiegrrrrl]

15. cheer up..if the interest rate is below 5%, they would be smart to lock it in NOW.

And grab that house.
Cause rates are going to start climbing, sooner if not later.

[SheilaT]

16. I would think that if the locked in rate is

good until the closing date, it will remain good. That's the whole point of locking in a rate.

Locking in the rate is always a bit nerve-wracking, because you don't want to do it too soon and miss out on a lower rate, nor wait too long and have it jump up on you.

In any event, talk to your realtor and see if she knows the likelihood of a jump in the rate, and if so, the likelihood of your sale not happening.

[Fire Walk With Me]

10. They're saying on the news that it would mostly effect the middle class.

Don't know if that's correct or not, but we all know how much the repubs hate the middle class.

[NotThisTime]

13. Well, that's us, so I'm worried

[gateley]

14. Sigh. It always does. It's correct, I'm sure. :-( nt