Mortgage Refinancing

The Federal Reserve began a two day meeting today and could announce a change tomorrow in interest rates. At the last fed meeting short term rates were cut a half percent. ” In tonight’s Money Alert, Local 12’s Paula Toti says, regardless of what the fed decides this week, it may be time to refinance your mortgage. The fed only directly controls short term rates. Those rates have a quick impact on car loans, credit cards, and adjustable rate mortgages.

Many experts believe the fed will lower rates again tomorrow … or at least again by the end of the year. But if you have an adjustable rate mortgage, it may be better to play it safe and get a fixed rate loan, rather than play the waiting game. If you bought a home when interest rates hit a record low in 2003, you may have some time before you need to refinance, if you got a rate fixed for seven years.
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