The Federal Reserve cut short term interest rate by quarter of a point (.4) from 4.50% to 4.25%. This move will help lower your credit card interest rate, home equity line of credit rate however interest rate on fixed loans such as student loan and for ARM adjustable loan . Most borrowers that have ARM home loan will not see decrease in interest rate because of most of these loans are tied to London Interbanks offered Rate called LIBOR. LIBOR is the rate which bank charge on loans they lend to each other and because of the continuing worries in the housing market the rate is still relatively high compared to the U.S Treasury rate. .
If you are planning to buy a house and have high credit card balance, this may be time to shop around for low interest rate card and start paying down the balance. If you also have student loan with adjustable rate you may want to check your loan document and see what market the rate is tied to. If you rate is tied to Libor you may actually see an increase in your rate, but if you rate is tied to Treasury it may decrease. Now may be a better time to refinance student loan that is tied to LIBOR. Check your loan document to find out what bench bank is tied to.
If you want to find out if you qualify for a home loan we have reputable Mortgage lender that can quickly pre-qualify you . Contact me @ Keji Iluyomade of Fairfax Realty 301-794-9400 or 301-613-2043 email: Keji@metrohomesrealty.com.
To view list of properties available for sale in Greenbelt MD visit me @ www.metrohomesrealty.com .