Federal Reserve Chair Janet Yellen made an announcement dated March 18, 2015 that the Fed is opening the doors to interest rate hike in the next few months. The financial world will be searching for possibilities about the timing of the hike on interest rates. The central bank has expressed that the first hike would be before the end of 2015; but investors think it could come as soon as the Fed’s mid-September meeting. How does the decision of the Fed affect world?
Mortgage rates will soar high. A big rush of mortgage applications is happening in 2015 as the Fed signals its intention to increase rates. This is driven by people refinancing to lock in lower interest rates.
You lock in your mortgage interest rate while you can still afford the payment. So if you can afford a 15-year rate, do it now! Try consulting a VA Lenders Cherry Hill NJ firm for this matter.
As the central bank raises the federal funds rate target, the prime rate begins to increase and interest rates on all kinds of loans start to increase. So what a better opportunity for you to borrow money and apply for your VA Home Loan Eligibility?
When the prime rate is low, you can have more incentives to borrow money for your home mortgage since the cost of loans are lowered. You can apply your loan now at VA Loan Lenders Cherry Hill NJ.
The Fed influences the credit card interest rates. So what a good chance for you to use your credit card for your home loan while the rates are low.
If you have a fixed-rate mortgage, the changing interest rates will not affect your bill. But if you are trying to secure a fixed mortgage, or attempting to refinance, the rates will likely creep up ahead of when the Fed actually implements the interest hike.
Auto loans are also affected by the Fed’s interest rates.
If you happen to have a lease contract, you could also be affected. It is suggested that consumers with six months or less left on a lease should consider trading in their car before the Fed interest hike. Locking in a fixed rate lease ahead of an announcement means a lower interest rate for the life of the lease.
If you lock in today, you can have savings in your mortgage loans due to lower rates. You can channel these savings into investments like stocks.
Indeed, there are best reasons why you should not wait for the moment the recent fed hike impacts your mortgage rates. Decide to lock in today!