HOW DOES 0% INTEREST RATES AFFECT YOUR MORTGAGE RATE? SHOULD YOU BUY A HOUSE RIGHT NOW?
The Fed just cut rates to 0% so what is its impact on Mortgage Rates. What does this really mean to you? Since the interest rate cut just pushed rates at or near 0%, this keeping money flowing to banks during the fall out from the Corona Virus Covid 19.
Hey, everyone, I’m Jerry with Jerry Pinkas Real Estate Experts and today I’m going to break down, what the 0% fed interest rate means to you and what you need to know about buying a house right now.
Before we get started to make sure you subscribe to this channel, and if you’re on YouTube click the alert icon, that way when I release more tips like this you’ll get notified.
Now I have a question for you. Are you nervous? Are you excited?
Naturally many people are excited and nervous at the same time right now. But here is the truth.
People think the fed 0% interest I can go out and buy that new car no money down no money and free cars wash for life. True we have seen some really great deals on car loans, but what about houses?
But the fed rate is the rate which banks loan money to the banks. They want to keep the banks with money so they can make loans and keep the economy flowing.
Don’t mean your mortgage or interest rate is going to be 0%. The banks have to make some money or they wouldn’t be leaning you the money.
Because a lot of people have rights to the banks to refi the rates naturally went up just a hair.
My crystal ball tells me more people will look at there mortgage and see if they can save money but refining to free up some cash. Many people are still buying and selling in our market.
It doesn’t mean the rates are going to be cut in half or go lower. They are at the lowest rate they 30-year mortgages are cheap and 15 years are even cheaper. we have seen many investors jumping on the rates since rates haven’t been this low since the 1940s. We have several clients who recognize the opportunity and have the ability to pay cash but are financing because the money is so cheap for them.
Now, what should you do right now?
We have many clients who are of retirement age and it’s not about the money, or the interest rate. it’s about the time they have left and their life.
Going to have to live somewhere so, why not live in an area that has low taxes, great weather year-round and enjoyable lifestyle. if this is you you should move forward.
If you have a job that is affecting you, your not sure about job security, you should wait.
I know a lot of others in the industry will yell at me for telling you this but its the truth! One this I always do it may not be what you want to hear but I’m going to tell it like it is. I had a guy stop buy had $75k burning a hole in his pocket and I talk him out of it. I also had an older couple who had to move from where they were because of high taxes, doctors told them to move to our client for their health and because the cost of living was cheaper here. I told them to move forward.
When the Fed announced they were lowering the key interest rates to Zero plus in addition they are unleashing 700 billion of quantitative easing. So, what should you do?
Adjustable-rate loans NO don’t do it now.
Lock into the historic low rates now.
A lot of people in our industry may not like what I say right now, because they are always selling. My team is different and we talk through every client to make sure they are making smart decisions.
If my family needed a home I would be doing it. If I was retiring I would be doing it.
But if your buying because of an interest rate. Or if your buying because some they said to. I would wait.
Make sure you are buying because of you! Make sure you are buying because of your needs!
If you have job security, financial security Now is your time! Now is the time in your life.
I tell you this because if you don’t move because of fear. It will be a mistake. You will regret it because you missed it. and down the road, you will regret that you missed that time in your life. especially when you are older.
The story I heard over and over again is I wish I would have bought back in the day. Or I wish we would have bought it earlier.
Click Here To Subscribe! ▻
#0%InterestRates #PersonalFinance #MortgageRates
Brought to you by:
Jerry Pinkas Real Estate Experts
604 N 27th Ave
Myrtle Beach, SC 29577