1 Answer

The loan you took out can be sold over and over again to whoever wants to buy it. They do it all the time. Loan companies dont need permission to sell a debt. BUT when you signed your loan papers you decided what kind of interest rate you wanted; fixed, or flexable. A fixed rate means it will stay the same interest rate for the leangth of your loan. For example Your rate starts Jan.1,2012 at 19 % for 30 years. it will not change no matter what the interest are doing even if the drop to 5%.

If you agreed on a flexable interest rate  then on jan.1, 20012 you start at 19% for two years it stays at 19% then if the interest rates drop yours will follow, if it goes up unfortunatley it will follow it two.

The best thing to do if you are on a flexable rate and you see an incline in rates refinance at the lowest rate you can  get and make it a fixed rate. You can allways refinance it again if the rates drop lower. Our economy is in trouble now and flexable rates are dangerouse.