FED Lowering Interest Rates Should You Refinance

With all the recent news of recession, it still amazes me that less than six months ago, sometime in July, they were talking about how strong the economy was and they were still talking about raising rates. Rates were going up slightly and the refinancesand home sales were way down. Could they not see that things were slowing, are they not following the apparent signals that I have seen for so long.

Now they are finally seeing that the economy is in a downturn, they are lowering rates and finally seeing the writing on the wall. The economy is slowing, I could have told you that a year ago, knowing that the bad lending practices and easy money would eventually come back to hurt the economy. Now with continual slowing housing market they are trying to stimulate the economy by lowering rates. Will this work? Well we are yet to see.

Many people are still worried about their mortgages and resetting loans. So is it a good time to refinance? Could be. Yes rates are coming down but qualifications are tighter. Now if you have a loan that is about to reset because you got into an option arm some time ago and your payment is about to adjust it might be a good time to refinance. But make sure you know what your goals are in refinancing. The banks
or mortgage people are hungry for your business but make sure that you get all the fact. Make your loan officer show you the best options.

If you are in a good loan and just want to consolidate bills and free up alittle cash a Home Equity Line of Credit (HELOC) may work out better. There is a program offered by United First Financial that can show you how you can use a HELOC to consolidate bills to free up more money to eliminate debt. The program can show you how to use that extra money to become debt free in as little are 8 to 11 years.

Finding out the best option for you and your family will take a little research. Don't just follow the media and the rumors. Find out for yourself the best solutions that work for you. Get educated to empower yourself to financial freedom.