Special News Alert About Your Finances September 20th, 2006
Darren Meade
September 20, 2006
Policy makers at the Federal Reserve, including Chairman Ben Bernanke, elected to leave interest rates unchanged at the latest meeting of the Federal Open Market Committee. This news met expectations in the bond markets as it appears the Federal Reserve is going to wait for additional economic data before deciding to increase interest rates further.
This leaves the Prime Interest Rate, which banks and lending institutions use as a benchmark for setting many interest rates, at 8.25%.
Those with Adjustable Rate Mortgages scheduled to adjust or reset soon still need to be prepared for an increase in interest rates. Some borrowers with ARM loans are already experiencing rates of over 8%. Home Equity Lines of Credit, also known as HELOCs, now carry interest rates that may exceed 10.25%. I have even seen some cases where clients have had HELOCs with interest rates in excess of 11.00%!
Credit card interest rates, which are often tied to the Prime Rate, remain at recent historic highs. I've worked with several clients who have had credit card interest rates that exceeded 23.90%!
What should I do now?
For those who are interested in either buying a new home or restructuring their finances, consider looking into a mortgage with Low Closing Costs or No Closing Costs. With each of these options, the mortgage comes with an interest rate that is slightly higher than a normal market rate. However, in both cases the lender pays either a portion of or all of your closing costs depending on your loan amount and credit situation.
For those who are looking to take advantage of lower interest rates in the future or expect to be moving within four years, the savings can be significant!
More importantly, the majority of the closing costs you pay are not tax deductible. Home mortgage interest, on the other hand, is tax deductible in most cases. So, not only could you pay less money by choosing the No or Low Closing Costs option, any additional amount you pay in the form of interest could then decrease your taxes.
Interest Rates for Fixed Rate Mortgages are still very attractive!
Fixed interest rates are at their lowest levels since mid-May. This may offer you the best opportunity to grab the lowest remaining fixed rates of the year as some experts predict rates will go higher.
If you're considering purchasing a home or investment property, this is the time to do so. Waiting could lead to higher monthly payments for the same piece of real estate.
Consolidate higher interest rate loans and lines of credit into an affordable fixed rate loan, complete with lower monthly mortgage payments. Some customers have saved over $700 a month by refinancing.
Remember are earlier guidance pertaining to the upcoming congressional vote pertaining to China and the Yuan.
Call me today, and I will prepare a FREE Analysis to see how a new loan program could benefit you.
This leaves the Prime Interest Rate, which banks and lending institutions use as a benchmark for setting many interest rates, at 8.25%.
Those with Adjustable Rate Mortgages scheduled to adjust or reset soon still need to be prepared for an increase in interest rates. Some borrowers with ARM loans are already experiencing rates of over 8%. Home Equity Lines of Credit, also known as HELOCs, now carry interest rates that may exceed 10.25%. I have even seen some cases where clients have had HELOCs with interest rates in excess of 11.00%!
Credit card interest rates, which are often tied to the Prime Rate, remain at recent historic highs. I've worked with several clients who have had credit card interest rates that exceeded 23.90%!
What should I do now?
For those who are interested in either buying a new home or restructuring their finances, consider looking into a mortgage with Low Closing Costs or No Closing Costs. With each of these options, the mortgage comes with an interest rate that is slightly higher than a normal market rate. However, in both cases the lender pays either a portion of or all of your closing costs depending on your loan amount and credit situation.
For those who are looking to take advantage of lower interest rates in the future or expect to be moving within four years, the savings can be significant!
More importantly, the majority of the closing costs you pay are not tax deductible. Home mortgage interest, on the other hand, is tax deductible in most cases. So, not only could you pay less money by choosing the No or Low Closing Costs option, any additional amount you pay in the form of interest could then decrease your taxes.
Interest Rates for Fixed Rate Mortgages are still very attractive!
Fixed interest rates are at their lowest levels since mid-May. This may offer you the best opportunity to grab the lowest remaining fixed rates of the year as some experts predict rates will go higher.
If you're considering purchasing a home or investment property, this is the time to do so. Waiting could lead to higher monthly payments for the same piece of real estate.
Consolidate higher interest rate loans and lines of credit into an affordable fixed rate loan, complete with lower monthly mortgage payments. Some customers have saved over $700 a month by refinancing.
Remember are earlier guidance pertaining to the upcoming congressional vote pertaining to China and the Yuan.
Call me today, and I will prepare a FREE Analysis to see how a new loan program could benefit you.