Technically, The Fed\u2019s decision in July to lower interest rates by a quarter-point doesn\u2019t directly affect mortgages. In reality, there are usually some things to keep in mind with any rate decrease or increase.
\nThe Federal Funds rate is a measure of short-term borrowing, or the rate that banks use to lend money to each other. Mortgages are long-term notes.
\nIf you have an adjustable-rate mortgage, you\u2019ll probably see your interest rate go down when there\u2019s a cut. To put that in perspective, a Bankrate article said that a HELOC (home equity line of credit) of $100,000 rises or falls about $250 a year with every change of 0.25 percent in interest rate, up or down. That works out to about $21 a month.
\nAdditionally, variable-rate mortgages usually adjust annually, on their anniversary dates, and some don\u2019t adjust at all for the first two to seven years.
\nHowever, this could be a good time to refinance into a fixed-rate mortgage and lock in the historically low rates. The average rate on a 30-year mortgage fell to 3.75 percent, down from a high of almost 5 percent in 2018.
\nDo a little math to figure out your savings over time, as well as closing costs, to determine whether this is a good move for you.<\/p>\n","protected":false},"excerpt":{"rendered":"
Technically, The Fed\u2019s decision in July to lower interest rates by a quarter-point doesn\u2019t directly affect mortgages. In reality, there are usually some things to keep in mind with any rate decrease or increase. The Federal Funds rate is a measure of short-term borrowing, or the rate that banks use to lend money to each […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32,3],"tags":[],"class_list":["post-1158","post","type-post","status-publish","format-standard","hentry","category-general","category-home-insurance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts\/1158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/comments?post=1158"}],"version-history":[{"count":1,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts\/1158\/revisions"}],"predecessor-version":[{"id":1159,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/posts\/1158\/revisions\/1159"}],"wp:attachment":[{"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/media?parent=1158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/categories?post=1158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insure-us.org\/blog\/wp-json\/wp\/v2\/tags?post=1158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}