Have you noticed that banks are paying about 3% on short-term CD's? Student loan interest rates will be going up 1.9% after July 1. Most of the fancy short-term interest only mortgages have also been moving up.

It is interesting, however, that 30 year fixed rates have been staying the same or even going down. Lately, I have been able to get clients better rates on a 30 YEAR FIXED RATE MORTGAGE as opposed to a 3, 5, or 7 year interest only loan.

My favorite loan has a fixed rate for 30 years but allows you to pay interest only for the first 10 years. This keeps your payments low for the first 10 years and locks in the same interest rate for all 30 years. Depending on your credit history, I may be able to get you this loan at a fixed rate of 6% or less. I highly recommend that you lock in a fixed rate now, before they go up.

Federal Reserve Chairman Alan Greenspan recently indicated that the dramatic increase in interest-only mortgages and the introduction of relatively exotic forms of adjustable-rate mortgages are of concern to him.

In an attempt to keep the economy and inflation on an even pace, the Fed has boosted rates eight times -- each in quarter-point increments -- since June 2004. Most analysts expect another increase June 30. Some analysts believe the Fed will keep pushing rates higher through much of this year. Long-term rates have been falling even as the Fed has been pushing up short-term rates, a divergence Greenspan said that is "clearly without recent precedent."

If you want to learn more about the Federal Reserve, go to: http://www.federalreserve.gov/

I am continuing to build my business and I need your help. When a neighbor, friend, or relative mentions buying, selling, or refinancing a home, please give them my number, or email or call me with their information. I am committed to giving my clients the best possible service.