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401k and Personal Finance

Free money from CitiBank: 0% balance transfer

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Last week I received the new credit card from CitiBank, which I immediately put it in use by transfering some of the high interest (7.75%) debt in my HELOC to this account. Note this 0% offer is valid for one year.

I found out this offer from MyMoneyBlog.

I have done credit card balance transfer since year 2000. I think most people care about the rate, and the transaction fee when doing balance transfter. But I think the time length is also very important:

I normally prefer a 3.99% life time (life of the balance) over a one year 0% balance transfer. Consider this as a long term loan (higher rate) vs. a short term loan (low rate). I have more freedom deploying the long term borrowing. I think that’s one reason I maintain my HELOC.

Mortgage rate reducation
On a related issue, I heard from my friend that the mortgage rate was falling last week. I am thinking about refinance my mortgage. Will the mortgage rate drop more as Mr. Bernake offcially lowered the Fed rate (late this month)?

It seems to me the market is expecting at least 1% cut this year.

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