Take Advantage Of Record Low Mortgage Rates
Mortgage rates are officially the lowest in American history. 11 trillion in mortgages are eligible for refinancing that would lower the homeowners interest expense and monthly payments.
If you have a mortgage rate that is 4% or higher, it’s a good idea to look at your mortgage options.
I’ve included a link below to my personal mortgage bankers customer reviews along with his contact information.
Brandon Brotsky – Reach Home Loans – Brandon’s Reviews – Call or Text: 954-478-8366
NMLS #1599275 |
Fed Cuts Interest Rates By Half A Percentage Point: How This Will Affect You
Source: Forbes — Liz Frazier
Tuesday morning, in a preemptive move to protect the economy from the coronavirus, the Federal Reserve cut interest rates by half a percentage point. This is the not only the first unscheduled, emergency rate cut since 2008, but also is the biggest one-time cut since then. The new benchmark interest rate is a range of between 1% and 1.25%.
Typically the Fed lowers rates to stimulate a slowing economy. The goal of interest cuts is to bolster confidence in the economy, encourage companies to hire more people and consumers to spend more money. In this case, the economy is strong but “the coronavirus poses evolving risks to economic activity,” the central bank said in a statement.
While this cut may (or may not) help stimulate and provide some protection for the economy, how does it affect the everyday American? In a nutshell, interest rates affect anyone who borrows for high cost items, such as education, homes and cars. Below are some of the personal and financial effects you may experience.
Although federal funds and mortgage rates are not actually directly linked, this cut could potentially lower what are already incredibly low mortgage rates. This won’t affect your current fixed mortgage rate, but those with a variable rate may see a reduction in their payments. The cut will most benefit prospective homeowners and those looking to refinance. “Lower rates provide an opportunity for lower cost borrowing including for mortgages which support refinancing and prospective homebuyers . For savers, it will remain import to shop around for the best rates.”explains Bankrate.com’s senior economic analyst Mark Hamrick.