There's so much information in the news, let me help break down what it all means for you and your mortgage.
You may have heard the Fed cut rates to 0%. That means your mortgage interest rate is 0% now, right? Well, that's not quite how it works. The Fed controls the interest rates at which banks can borrow money, not the mortgage interest rate at which you can borrow money. Although the two can sometimes be related, they are not equal. The Fed rate is more impactful for short term loans (think cars or credit cards). So what drives mortgage rates? A lot of things, including mortgage-backed securities, liquidity, and capacity – basically good old supply and demand. “Can I Refinance at 0%?” No, you cannot. “Should I refinance?” Maybe, but not because of the FED cutting rates recently. What's your best course of action? The good news is rates are still very low. The better news is that as an Independent Mortgage Broker I have the ability to shop around with multiple lenders to find the best possible solution for you based on your needs. If you're interested in learning more, drop a comment here or shoot me an email at erin@loanzonemortgage.com.