This is an interesting factor that we need to take into consideration if you are a buyer that is waiting for the real estate market to drop further, please don't forget to factor in the interest rate increase.
This can save you hundresd of thousands of dollars. Yes, Hundreds of thousands of dollars in interest. If your rate goes up 1% on a loan of $500,000.00 it will cost you an additional $250,000.00 in interest over a 30 year period.
Don't be pennywise and pound foolish. I have included links below on this subject in detail for you here:
http://activerain.com/blogsview/487163/Interst-Rates-up-Dont Save money on interest rates
http://activerain.com/blogsview/452990/Los-Angeles-County-Grea
Fed lowers rates, hints cuts may be at end
The Federal Reserve cut the federal funds rate by a quarter of a point to 2 percent on Wednesday, the latest - and possibly last - in a series of reductions aimed at staving off a recession and easing the credit crunch.
MAKING SENSE OF THE STORY FOR CONSUMERS
- In September, when the Fed initiated the first of seven consecutive interest rate reductions, the federal funds rates stood at 3.25 percent. The last time the rate was this low was in December 2004.
- In making the announcement, the Fed noted that, "The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity."
- There was some speculation that the Fed was leaving the door open to additional rate cuts if inflation concerns become reality. However, others speculate the Board may leave rates alone until the impact of its recent efforts become clearer.
To read the full story, please click here:
http://www.reuters.com/article/ousiv/idUSN2932860320080430
REUTERS
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More articles:
Senior Care & Events
http://activerain.com/blogsview/471828/Senior-Long-Term-Care
http://activerain.com/blogsview/472230/Keep-Safe-Coalition-Protecting
http://activerain.com/blogsview/467528/Reverse-Mortgage-is-it
http://activerain.com/blogsview/471828/Senior-Long-Term-Care
Real Estate
http://activerain.com/blogsview/487163/Interst-Rates-up-Dont Save money on interest buy now
http://activerain.com/blogsview/452990/Los-Angeles-County-Grea FHA
http://activerain.com/blogsview/462789/Renting-Versus-Buying-In
http://activerain.com/blogsview/389098/Tax-Savings-on-Moving
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http://activerain.com/blogsview/142901/Searching-for-Best-Schools
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