Not Acting May Hurt More

Dated: August 18 2017

Views: 391


At the beginning of last year our interest rates were at a all time low with some people getting loans at the record low of 2-3%  Nowadays your typical AAA rated loan is around the 3 - 5% mark.  It may not look like much but this has a astronomical effect on your monthly payment and life time of your loan. (we all watched the big short right lol)


Are you on the fence about becoming a homeowner??   Not becoming a home owner may be costing you thousands of dollars in rent money and missed opportunities.   

 The reason is,  interest rates on most everything we buy and sell is dictated by the US central bank (Ie, The FEDERAL RESERVE or the FED for short)   The federal reserve lends massive amounts of money to all major and minor banks, credit unions, and Lenders in order for them in return, to lend the money to you, the consumer (IE. everyone, the American people, foreign investors and USA Investors or anyone looking for a loan)   


 When the housing crisis happened in 2008, the federal reserve in order to encourage investment and growth, lowered the interest rate to 0%, meaning they did not charge the banks anything for the money they would borrow.  Your bank in return would give you a loan at a much lower interest rate, because they were getting the money for free from the FED. Passing the Savings along to you ( such good guys right lol).   

 Due to these practices we saw a fast pace growth in the American economy and Job creation, now given that the economy is Stabilized, the FED has decided to raise interest rates again, this is causing banks to also raise their interest rates.  Which in turn will cause your monthly payments to increase (keep in mind if you already have a home loan with a fixed 30 year rate you have nothing to worry about, your rate is guaranteed for the next 30 years) (if you have a high rate  loan it may be time to refinance.)   

 For this reason I am calling to all my clients and friends, to please let me know if this situation is one you find yourself in.   Feel free to contact us at any time.  It'll be a honor and pleasure to serve and help you SAVE, INVEST and GROW your wealth through real estate.                           

Keep in mind that most loans today are 30 years fixed with interest rates ranging from 3-5%  (some of the lowest interest rates in history)  So when it comes to budgeting, you will no longer be a slave to the ever increasing rental values.   Your mortgage  payment today will be the same 30 years down the road.  Not only that you will no longer burn money away on a rental with no returns, you'll be able to grow your wealth through the equity you make on the house.

I hope this inspires you to take action.

Earl Nightingale once said, all humans are self made but only the successful will admit it.

Its time to start admitting it.    (AP report on how interest rates are and WILL continue going up) report on the same issue) press report on how the federal reserve is informing congress that they will raise interest rates)These articles are copy written and posted for educational purpuses to our clients, in the hopes that they take advantage of these benefits.).

 John Beghini

Real Estate Expert


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Lily Chandler

Being a member of ORRA and a Realtor®, I hold myself to a higher standard than an agent. It is important to me that I give you my dedication, communication and time. I am here to uplift others and gu....

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