Thursday, March 20, 2014 - Article by: Prospect Financial Group, Inc. -
In December 2013 the Federal Reserve made the official announcement that they would begin cutting their current bond buying programs by $10 billion per month; and yesterday, they announced another $10 billion reduction. As of March 2014, the Fed has cut their original $85 billion monthly budget to $55 billion.
Is it possible to get a low mortgage rate amidst Fed tapering? Continue reading for some helpful tips!
Complete Your Mortgage Transaction in the Next 3 to 6 Months. The Federal Reserve's stimulus program was originally introduced to positively stimulate the economy by driving interest rates down. So quite naturally, interest rates will begin to increase as the Fed continues to taper the program. If you are planning on purchasing a home or refinancing an existing mortgage in the next year and can afford to do so sooner rather than later, it can help you save. Completing your transaction in the next three to six months can definitely help you save, as interest rates are expected to be in the 5 percent range by the end of the year.
Become the Ideal BorrowerLenders determine what interest rate they will give you based on how much risk you present as a borrower. Those borrowers with the ideal financial profile will secure the best interest rates. Lenders take the following factors into consideration:
Make sure to pay all of your bills on time to maintain your credit score and to keep your outstanding debts low overall.
To begin your home finance transaction today and avoid increasing mortgage rates, give Prospect Financial Group, Inc. a call at 858-605-0952.
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