Tuesday, August 16, 2011

Stock Trading and Interest Rates

We've been talking about it for a while, and we're finally going to re-finance our mortgage tomorrow.  The rate on a 15-year fixed mortgage had been at 3.75% for a while.  Occasionally, it dropped to 3.625% and then went back up.  The day we went to the bank to sign papers for Beth's car loan, the rate dropped to 3.625% again, and we decided we better grab it - so we locked the rate in.

That was right about the time the government was in a big mess because of the whole debt thing, and nobody could really tell us what that might mean for the the interest rates.  Well, it turns out we should have waited, because the rates went down - to 3.25%.  I guess it's all a gamble, like Stock Trading and playing the market.  Some people have a good feel for the direction things are going and know when to buy and when to sell.  I don't think we have that talent - at least if you're going to judge our financial savvy on how well we hit the interest rate at the right time.

There's quite a bit of information about Online Trading available, information that we'd definitely need if we decided to get involved in investing.  With all the turmoil in the stock market recently, I'm a bit worried about how that's going to affect Jeffrey's 401K.  I've heard that people who are in the market for the long-haul should be OK - meaning, if you aren't planning on retiring right away, it should be all right.  So, maybe...

Or maybe we should look into IRA Accounts.  Probably should.  I think I'm going to have to do some reading and learn a bit more about investing and trading.