Which Costa Mesa Homeowners Benefit from the Rate Cuts?

By
Real Estate Broker/Owner with The L3 Real Estate, A Trusted Name In Orange County Real Estate #00573423

When interest rates were cut after the Fed’s July meeting, the press was quick to point out that not every homeowner would benefit from the move. As Bankrate.com noted in its lead article How the Fed’s Interest Rate Decisions Affect Mortgage Rates, “the majority of Americans won’t be affected.”

When interest rates were cut after the Fed’s July meeting, the press was quick to point out that not every homeowner would benefit from the move. As Bankrate.com noted in its lead article How the Fed’s Interest Rate Decisions Affect Mortgage Rates, “the majority of Americans won’t be affected.”

That’s true for the moment. But for some Costa Mesa homeowners, by last week, the immediate effects were positive. The Bankrate commentators touched on some of the traditional economics behind the effects (“there is an inverse relationship between bond prices and yields”)—but the practical repercussions were more straightforward. Mortgage lenders reacted with rate cuts, so:

• Benefits flowed to the some home loan borrowers with adjustable-rate mortgages (ARMs).

• Also benefitting were those using home equity lines of credit (HELOCs).

• Current fixed-rate mortgage holders may be able to cut their mortgage payments via refinancing.

• Possible beneficiaries will be homebuyers whose budgets could now stretch to fit pricier homes.

The reason only some ARM holders will benefit immediately is because these loans usually adjust annually—and some don’t adjust for the first two, three, five (or even seven) years.  To check out what your house might be worth with the new rates click here.

The Bankrate piece linked to another article, from way back on June 3rd. It described how “nearly 6 million people can now cut their mortgage payments with refinancing.” That was after May’s “sharp drop in rates” (which came as a surprise) “nearing 4%.” At that time, it was estimated that a typical refi would save U.S. mortgage holders an average of $271 per month. With last week’s typical rate in the 3’s, it’s clear that those who held off in June might well see even greater savings.

The actual benefits for Costa Mesa homeowners are an individual calculation. As always, we are more than happy to discuss any of your Costa Mesa real estate plans. Call us!

We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com

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Larry & Laurie Weichman

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