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Home / Mortgage Information / Fed Rate Cut Does Not Equal Lower Mortgage Rates

03.31.20 Mortgage Information, News

Fed Rate Cut Does Not Equal Lower Mortgage Rates

You’ve probably heard that the Federal Reserve, also known as the Fed, cut interest rates to zero on the Fed funds rate. There’s a common misconception that the Fed rate matches mortgage rates. Although the Fed rate was dropped to zero, this unfortunately does not mean that mortgage rates are also zero. A Fed rate cut does not equal lower mortgage rates every time. Here’s why…

How Mortgage Rates Differ

There is a big difference between the Fed funds rate which can change day to day and a mortgage rate that can stay in place for 30 years. Mortgage rates are normally based on mortgage-backed securities, which have done very well in bringing mortgage rates to historically low levels. But recently, the turmoil in the financial market has caused mortgage rates to rise a bit even though the Fed has cut its rate. However, depending on when you last obtained your mortgage, rates may still be lower than your current rate.

Ways to Save Money

I believe that there may be an opportunity to consolidate your debts, reduce years on your mortgage, and create wealth all by keeping or reducing your current monthly payment. Feel free to contact me with your questions or to learn more about how we can help you save money in this current financial market. With so many changes occurring these days, I can help you understand your options as it relates to your current mortgage, including whether refinancing makes sense for you right now.

More on Why Fed Rate Cut Does Not Equal Lower Mortgage Rates

If you’d like a more detailed explanation on why a Fed rate cut does not equal lower mortgage rates, I am happy to discuss it with you. I am also available to assist with all of your mortgage needs. Feel free to reach out to me. Although our office is not accepting walk-ins due to Coronavirus precautions, I am continuing to work and assist customers remotely and using virtual meeting tools.

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Tags: Fed Rate, mortgage rates

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Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.

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Direct/Mobile: 978-376-5389
264 South River Rd, Suite 550
Bedford, NH, 03110
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Topics

  • Local Information (61)
  • Misc Topics (14)
  • Mortgage Information (118)
  • News (22)
  • Real Estate Information (176)
    • Featured Properties (2)
    • Home Buyer Tips (134)
    • Home Maintenance & Repair (12)
    • Home Seller Tips (40)
    • Market Trends (24)

Disclosure

Company NMLS 1788.
Licensed by the New Hampshire Banking Department #13092-MB.
Licensed in Massachusetts.
Licensed in Maine.
Licensed in Florida.
Lender and Broker License #MC-1788 (Not Licensed in Alaska or New York)
http://www.nmlsconsumeraccess.org
Click Here for Our Privacy Policy

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