Feds Cut Rates - Is This A Good Time To Refinance Your Home Loan?

[Expert-Author]

January 23, 2008

History has been made. It's been some 17 years since rates were
slashed this deep. And that on top of the fact that key rates were
already dropping. That said this could be the quiet before the storm.
Even now a mortgage loan rate search network is seeing a steady
increase in traffice to and from search engines. The big question
being asked? Is this a good time to refinance my home loan? The
answer. First some facts.

Feds cut rates 75 bps. The New York Times reports, "The reduction in
the federal funds rate from 4.25 percent down to 3.5 percent marked
the biggest reduction in this target rate for overnight loans on
records going back to 1990."

Fact is a rate cut at the right time can provide a boost of confidence
as consumers take advantage of more attractive financing rates and
seek ways to save money over the long term by refinancing home loans,
car and student loans as well as consolidating credit card debt.

Just talk of another rate cut from the U.S. Federal Reserve helped
stocks rally recently. Likely. How will Fed cuts impact your money,
credit card rates, mortgage, etc.? What rate lock-in moves should you
make now? What should consumers shopping for low rates do?

Is now a good time to financing a new home or refinance a home loan?

If you have an adjustable rate loan or credit card anticipate a drop
in rates in the weeks following a rate cut. Although fixed rates are
not immediatly and directly impacted 15 or 30 year fixed rate loan
programs will still become more attractive as mortgage business
improves and competitive rates become available. That said homeowners
will still see a savings of up to tens of thousands of dollars over
the life of the loan even if rates chosen are a fraction lower.

The rate cut news is said to impact 15 year mortgages for the better.
Homeowners should have no trouble finding lower mortgage rate deals
online. 

Advantages of Home Loan Refinancing:
1. Lower Current Interest Rate and Create Cash Flow
2. Convert ARM to a Permanent Fixed Interest Rate
3. Turn Equity into Cash
4. Convert to a Shorter Term to Pay off the Loan Quicker
5. Convert Fixed Interest Rates into an ARM
6. Eliminate Mortgage Insurance

For more rate shopping tips, mortgage news and access to sites
offering competitive mortgage rates visit http://www.refinanceloanrates.fimark.net