{"id":1158,"date":"2019-10-26T06:48:53","date_gmt":"2019-10-26T12:48:53","guid":{"rendered":"https:\/\/www.insure-us.org\/blog\/?p=1158"},"modified":"2019-09-06T08:49:35","modified_gmt":"2019-09-06T14:49:35","slug":"how-did-the-rate-cut-affect-mortgages","status":"publish","type":"post","link":"https:\/\/www.insure-us.org\/blog\/how-did-the-rate-cut-affect-mortgages\/","title":{"rendered":"How did the rate cut affect mortgages?"},"content":{"rendered":"\n

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":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t