Archives for June, 2007

exchange rates

The dollar is approaching its target level

Exchange rate update from Globes: Globes – business and technology news from Israel As the shekel approaches the 4.3 $ exchange rate, we’ll probably see the end of the 1.75% interest gap with the US. In Israeli mortgage terms: If you have a dollar based mortgage, you have probably missed out on the great refi opportunities available the past few months. If you are buying real estate, make sure to set the terms in shekels without any linkage. If you are selling real estate, you will be best to set the terms linked to the dollar....
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Your rate and the dollar

Here is a quick explanation of why we are all enjoying the robust economy. The good economy brings in investment. Investment strengthens the shekel too much. Interest rates need to be cut to weaken the shekel. This won’t last long. Enjoy it while you can. The interest rate cuts finally worked and weakened the shekel, says GIFT – Haaretz – Israel News  ...
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interest rate

A 30 year mortgage program might be better

In one of my earlier posts, I debunked the shorter is better myth. This isn’t true for everyone. In fact, for most people, shorter probably is better. If you are responsible and have the discipline to make payments as if you had a 15-year mortgage, you will come out ahead. However, this is very difficulty. You may also want to consider a mortgage program with a longer amortization period. Who will benefit from a mortgage program with a 25 or 30 year amortization period? People with the discipline to invest every month (you can do this with a standing-order from the bank). People with easily convertible investments with returns of greater than 4% (like a mature keren histalmut). People who typically have some overdraft....
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