The Federal Reserve slashed its target rate for overnight interest to a record low 0 to 1/4 percent. What does this amazing and historical benchmark mean for consumers…
You can get a home equity line cheaper… if you can find a bank to give you one and if you have any equity left. Your credit cards will probably remain unchanged and this has zero effect on mortgage rates.
The good news is that the Fed is also dumping tons of cash into mortgage bonds and that does have a big effect on mortgage rates. The mortgage bond market was up considerably today and that means tomorrow morning our rates should improve.
The Fed Rate cut only serves to remind everyone of what we already know, these are bad times. Here are a few tips to better navigate these troubled times…
- Eliminate and avoid debt at all costs. These times mean jobs are less secure and pay raises less certain.
- If there are big ticket items you are going to buy at some point, look for deals NOW! Automakers are giving away SUVs and businesses that are going under are having great clearance sales. Buy now, but only spend money you have! Do not establish new debt!
- DO NOT liquidate retirement money if you can help it. Buy LOW sell HIGH… do not sell low.
- Reposition! If you can stop spending money on an item you can live without, put that money into stocks or other investments that are down right now. Companies are basically on sale…
These are helpful tips but are not intended to be financial or investment advice. Please consult your financial planner if you have specific questions about how to best position your family during this period. If you don’t have a good financial planner, I would be happy to recommend a few.
Myers Park Mortgage is a HUD approved lender offering conventional, FHA, VA,
USDA and JUMBO mortgages. We are licensed to lend in North Carolina, South
Carolina, Tennessee, Virgina, Georgia, Indiana and Maryland.
Olan Carder contributes articles to Homesfortmill.com on a regular basis. He
works in the Charlotte NC metro market which includes Fort Mill, Tega Cay, Lake
Olan has recently started his own mortgage blog. If you are looking for more
mortgage tips and information, check out his new blog at http://charlottemortgageonline.com/.