Monday, March 17, 2008

So what does the new drop in Fed rate mean for you and me?

I suppose the first question I ask is about the economy - that's an easier question to ask - though not everyone seems to be in agreement as to the answer, yet bas%ic economic theory indicates it should be a stimulous.

What does it mean for us as individuals?

My realtor seems to think it will be easier to sell my other house - yet it still sits there - costing me more than $3000 a month.

I went to and checked IL jumbo rates. Most are about 7.5% APR with a select few under 7%, however the price is from Friday, so maybe it's no longer accurate.

I'm not sure if the short term rate cuts will effect long term bond prices - which seem to be the underlying factor for 30 year fixed rate mortgages, however I will call tomorrow and check out what this means.

Here are a few questions:

1. How much is it worth to refinance at 0 points? Is $400 enough or $1000?
2. If I refinance at $400 can I do it again three weeks later at the lower rate?

I'll find out the answers soon.

If you have any advice, please let me know.



Tom said...

Where is the house you are trying to sell, btw?

makingourway said...

Tom, it's in North Carolina.