What affects interest rates?

What affects interest rates? - Interest rates are affected by a number of different factors. The Federal Reserve is in charge of keeping the economy of the nation financially stable. They do this by controlling the short term interest rates and increasing or decreasing them. This in effect plays a role on the fluctuations of mortgage interest rates.

The rate you qualify for will depend on an entirely different set of factors. These include, your credit, the loan amount, the value of your home, the ability for you to document your income, etc.

The buying and selling of Treasury Bonds will also affect some of the longer term mortgage interest rates. The daily yield performance will indicate whether there will be any rate changes on a day to day basis.

Interest Rates on Adjustable Rate Mortgages are most affected by the performance of the index they are linked to. Common Indices include the MTA and the LIBOR.

ARM Refinancing - With so many consumers obtaining adjustable rate mortgages over the past few years there are millions of consumers whose mortgages are getting ready to make their first adjustments coming up soon. Therefore, there are many people who are going to need to look into the idea of refinancing their mortgages pretty soon. Call a mortgage professional immediately at to begin the refinancing process so that you are not stuck with a considerably higher interest rate and payment than what you started with.

Rates are still at historic lows and most homeowners can benefit from a refinance whether it be a debt consolidation or ARM to fixed rate.

Some Adjustable Rate Mortgages adjust every month.

It's a good idea to call a mortgage professional to discuss refinancing options at least two months before your current mortgage is scheduled to adjust.

It's important to be informed about your adjustable rate mortgage. Many homeownwers are painfully unaware of the terms and conditions of their most important financial instrument - their mortgage. All of the information that you need to know exactly what is going on with your mortgage loan is contained in the note. If you have trouble reading or understanding the note, call me. I will be glad to help you review it and know exactly when any changes are taking place and what will happen when they do.

After the initial adjustment, your ARM can adjust every 6 months to 1 year again and again, depending on your loan program.

Many adjustable rate mortgages (ARMs) also have a pre-payment penalty. The adjustment period usually begins at the same time the prepayment penalty period ends.

Refinancing my primary residence - Refinancing has been a very popular thing to do over the past decade or so. Consumers are realizing the power of their mortgage and the advantages that a mortgage can provide. By refinancing you can: help with end of the year tax savings, save in outgoing monthly expenses, lower your current interest rate, lock into a fixed interest rate, lower your monthly payments, consolidate debt, and much, much more.

At , we have many refinancing options available that meet the needs of every type of borrower. To find out how we can help you meet your financial goals, call or email me at .

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