Lately the media has talked a lot about the cutting of interest rates and yet they usually don’t give any information as to how the Federal Reserve cutting an interest rate will affect your finances. The reason that you rarely if ever see in-depth analysis of the affect of cutting interest rates beyond the sensationalized rallies on wall street is because the rates cut often are affecting what rate banks borrow money at. For consumers, rate cuts are often a trickle down effect. So when you here that the Fed is cutting rates keep in mind that you will usually get better interest rates on short term loans i.e. cars and credit cards quickly and the long terms loans like mortgages will be affected more slowly by the overall impact on the financial markets. If the Fed cuts rates by 1/2% the impact to you most likely is not 1/2% lower rate on your loans, but it is a move in the right direction. So here it is; rate cuts are good just not a direct correlation to your finances.

The 30 year fixed interest rates are in the 5.75% to 6.25% range for conforming, full documentation, primary residence mortgages.

If you are considering refinancing or purchasing a home call for a free good faith estimate and prequalification, so that you have all your facts before you make your decision.

Use the link below to access our mortgage web site. You’ll find many mortgage calculators at equityrichmortgage.com . Bookmark this page and send the link to any of your friends or family that may be exploring mortgage possibilities.