Dec
8
nazchee asked:
The Fed cut its federal funds rate three-quarters of a percentage point, and it also cut the discount rate three-quarters of a percentage point.
What does this all mean to a person such as myself with an ajustable mortage rate??
Do these cuts affect homeowners that have adjustable rates in terms of lowering monthly payments??
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The Fed cut its federal funds rate three-quarters of a percentage point, and it also cut the discount rate three-quarters of a percentage point.
What does this all mean to a person such as myself with an ajustable mortage rate??
Do these cuts affect homeowners that have adjustable rates in terms of lowering monthly payments??
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3 Responses to “How do feds cutting rates affect homeowners with mortgage payments?”
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It doesn’t mean anything today. As I understand it, it takes a little while before it trickles down to things like mortgages.
And, you’re right, it may very well affect the ARM people.
I think.
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If you have a fixed rate mortgage, it means nothing to you. You could refinance at a cheaper rate though.
What it really means is that your savings accounts, money markets are going to be returning less as the rate decreases.
mortage mortgage
For the most part the rate cut only means that your payment will not be going up soon. It may lower your payments, but that is not likely.
The people who benefit the most are those that are going to refinance, or those who are going to purchase a home.
Thier rates will be lower than they would have been without the cut.
If you have equity in your home, you may want to look into refinancing as well. Getting into a fixed loan at a lower rate is always a good move.