2nd
CBS Video on the FED Rate Cut.
Lot of people think that FED rate cuts mean a lowering of long term mortgage rates, which is typically not at all true. Interest Rates on 30 year fixed rate loans chance based on financial markets that are not set by the FED. The FED controls the short term rates that credit cards, home equity loans, and other types of shorter term debt are based off of.
If you have a Home Equity Line of Credit, you should be seeing a savings in the interest you are being charged. Likley true for your credit cards as well…
The FED indicated that this would be the last rate cut for a while, which actually helped mortgage rates go lower. Some of the other recent rate cuts caused mortgage rates to get worse, because the lower short term rates can lead to inflation. Inflation is like a four letter word to investors in mortgages, and they force the interest rates higher when they think there will be more inflation in the future.
This time, since there may not be any other rate cuts in the future, it has relaxed the mortgage investors, and rates have not gotten worse this time…
If you would like to understand more about this - feel free to leave a comment or question here and I will do my best to answer.
Fixed rates are right in the 6% range at the moment, and change daily (hourly sometimes… for a custom rate quote please visit the website below or call the contact numbers.
Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm offering Home Loans, Refinances, Purchase Loans, Commercial Loans and more. They also offer Investor Loans that Use Private Lenders to fund Hard Equity Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518.