On December 16th, 2016 Chairman Janet Yellen announced that The Board of Governors of the Federal Reserve (Head of the Bank of the Banks) were raising interest rates.
Chairwoman Janet Yellen is the first woman to hold this position. Chairwoman Yellen took over the position from Ben Bernanke and was sworn into her office on February 3rd, 2014 after the senate confirmation in January 2014.
The Prime Rate adjusted in sync with the announcement. However, most of the loan market already expected this and mortgage interest rates had risen about 0.25% in the 10-14 days before the announcement in anticipation, so there was actually little movement in long terms rates at the time of the announcement.
But, what does this mean for you? What does this mean for your clients? What is the actual cost?
The Federal Reserve has already raised interest rates by 0.25% and plan to continue raising rates 0.25% until next December so there will be a full 1% increase in interest rates. That doesn't sound like much, but for most people it actually adds up. Take a $300,000 home for instance. For each 0.25% increase in the interest rates on a $300,000 loan, that's an extra $43.56 a month. So over, the next year, if you are buying a $300,000 and the interest rates go up by 1%, that's an extra $174.24 a month in interest you'll be paying. That's easily a student loan payment, a car payment or a nice dinner out. If you look at it on an annual basis, it's over $2,090 a year in additional interest costs, which is over $10,400 over the next five years!! Now, you may think, well, that’s more of a tax deduction for me since it’s interest. Be sure to check with your CPA to see how that change will really impact your bottom line. But I say, a penny earned is a penny save, and even more important, $2,000 saved is by buying now is free money!
So, if you are considering buying a home, do it now! Get pre-approved and start planning now.
These interest rates are for the purposes of example only. You are not guaranteed these rates, you may or may not qualify for a loan.
For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com
For more mortgage tips check out our website www.bestmortgagebook.
For video mortgage tips and tools subscribe to our YouTubeChannel: https://www.
See what's new with Elysia on LinkedIn at https://www.linkedin.com/in/
For sponsorship opportunities go to: sponsorbestmortgagebook.
©
Hello everyone, I am Jennifer Robert, currently living in New Jersey . I am a single mom at the moment with two kids and i was stuck in a financial situation in May 2019 and i needed to refinance and pay my bills. I tried seeking loans from various loan firms both private and corporate but never with success, and most banks declined my credit ,do not full prey to those hoodlums at there that call them self-money lender they are all lies , all they want is your money and you will not hear from them again they have done it to me twice before I met Mr. Anderson Raymond. I will advise you to contact Mr. Anderson if you are interested in getting a loan and you are sure you can pay them back on time you can contact them No credit check, no cosigner with just 2% interest rate and better repayment plans and schedule if you must contact any firm with reference to securing a loan.
ReplyDeleteEmail: andersonraymondloanfinance@gmail.com
Phone: +1 (719) 629 0982
Facebook Page : Anderson Raymond Loan
Visit them Office Address @ (68 Fremont Ave Penrose CO, 81240
When it comes to financial crisis and loan then Anderson Raymond loan financial is the place to go.