Low Rates - Low Fed Funds Rate Means Low refinancing refinancing rates

Hello everybody!

Bankrate, the Fed funds rate currently is 0.25%. This is 4% lower than the same period last year. This Fed funds rate extremely low makes this is a moment ideal to refinance your mortgage. Why?The low fed funds rate average refinancing low rate. enable me to explain.

Consider money as an entity. It moves in, on and around the economy continuously through purchases, returns, loans, investments, payments, re-payments, etc. At any given time, hundreds of millions of people worldwide are moving money.To follow this movement, banks lend and borrow money and to them, on a basis in the short term (usually one night) .the federal funds rate is the rate of interest that banks charge each other when they lend money to each other. Today, this interest rate is 0.25%.

Here's how the low FED Fund average rates refinancing low: after the interest rates banks will charge is mutually established banks establish the lowest rate, they are going to charge for qualifying consumers and companies (people like you and me).This rate is called the "prime rate", which is the lowest rate of interest that a lender will be invoiced to consumers and loans commerciaux.Selon Bankrate, Prime rate is currently 3.25%.This time last year, the preferential rate was 7.25%.That means this year preferential rate is 4% lower, it was the last year - the same amount of difference as the Fed funds rate.

As banks are help Government, consumers can get help from the banques.Juste 1% in your interest rate can reduce your payments and make you save thousands in interest during the term of your loan hypothécaire.Avec Fed, funds to a low historical rates, now is a perfect time to take advantage of the resulting low refinancing rate

-Ken s.

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Ken s. is the founder of LowRateSearch where the company mission is to help consumers find low rates on loans, credit cards, insurance, and too many voyage.En more and earn more by visiting LowRateSearch homepage.