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Refinancing...Is It for You
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So much has happened this year to your home and your money. What’s next? It seems that The Fed’s Open Market Committee, which sets the short-term interest rates, has just lowered the rate by which the banks lend money to each other. The rates now range from zero to .25 percent. Now this should be great news if the market sees this as a good thing and not a form of bail out. Banks do seem ready to expand their lending since this is the lowest rate that banks have ever had to work with, we hope that this will enable them to give you and me the much needed mortgage interest rate drop. The Fed is trying to rekindle the confidence of both consumers and businesses. If the rate drops - time to refinance your home if you can do the following:
1. Save at least 1 point on your interest rate
2. Will be staying in the house at least 3 years ( to make a difference)
3. Need money to pay off high interest rate credit cards which is bad debt and let your house use it as good debt
4. Would use this time to get money to start to invest in real estate.
We hope that the Fed’s decision will entice the banks to lend money more freely and that banks will allow us to save money as well and take advantage of the market. |
