Indiana, PA - Indiana County

SMART MONEY: Just say 'no' to offer for 11 percent mortgage rate

by BRUCE WILLIAMS on December 23, 2012 2:15 AM

DEAR BRUCE: I am looking to buy a new home, and I've gone to one lender that has offered me 11 percent. I am confused, because I thought the interest rates were half that amount. I have excellent credit and a high credit score. It seems like too much to me. Am I wrong? -- Reader, via email

DEAR READER: You have got to be kidding. I hope you said NO THANK YOU and ran out. If what you say is true and you really do have a high credit score and excellent credit rating, there is no way you should be getting offered a rate that high.

Interest rates are as low as they have been in five decades. Unless you have terrible credit -- or want to put nothing down and even take some money out of the deal -- 4 percent is a reasonable, attainable rate when purchasing a private home.

Lots of people out there want to lend you money. If you have good credit, go and seek them out.

DEAR BRUCE: My husband received a settlement of $25,000 and would like to invest it and forget about it. We are relatively young, 39 and 38. We both have good jobs, so we don't need this money. We would like to let it grow until one day when we do need it. What are your suggestions? -- S.P., via email

DEAR S.P.: With the state of the economy at present, bank accounts and CDs are paying practically nothing. There are some good deals out there in the stock market. If you have the stomach for it and think you can afford to do without the $25,000 for a substantial period, the place to be is in some type of aggressive mutual fund or funds.

If you're not familiar with the fund market, it's time that you make the effort. Begin your research by reading financial magazines such as Money and Forbes, as well as the business sections of local and national newspapers.

With the amount of money you have to invest, you're going to have to do it yourself.

Since you work hard for your money, it seems to me that it's worth investing some time and effort to learn the language of investing and the options that are open to you.


Send questions to or to Smart Money, P.O. Box 7150, Hudson, FL 34674. Questions of general interest will be answered in future columns.

Owing to the volume of mail, personal replies cannot be provided.

The Bruce Williams Show can now be heard at on the Made in America Broadcast Network.

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