Kim Prat, one of our partners at Supreme Lending, had this to say about the latest interest rate hikes by the Federal Reserve System (Fed) and we are sharing her insights with you below. If you have any questions about financing please feel free to reach out to Kim directly, her information can be found at the bottom of this post.

Remember, whether you’re looking for a starter home, a new home or a vacation home, we are your local Real Estate Experts and our expertise is YOUR advantage. Call us, we’ll have you saying  #ChrisSolditToomey in no time! 954-701-0005

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Last week, the Fed hiked rates by a quarter percent for the third time this year. With our improving economy, this was completely expected and is the eighth hike after the rate was held at a record low for seven years. It is now 2.00%-2.25%, which is still historically low.

The Fed Funds Rate is the short-term rate set by the Federal Reserve for overnight loans between banks. Here’s what it means for the rest of us:

  • Don’t panic about fixed-rate mortgage rates. These are based on long-term rates, which the Fed hike does not directly affect. However, mortgage rates over time usually follow overall rate trends, though there are exceptions.
  • Adjustable Rate Mortgages (ARMs) and HELOCs may be affected sooner. ARMs and HELOCs (home equity lines of credit) are based on shorter term rates and may be impacted more quickly. The Fed indicated another quarter percent hike in December, so borrowers might want to lock in their rate now.*
  • Now is a great time for a mortgage review. In many cases the equity you have in your home may allow you to eliminate mortgage insurance and substantially lower your monthly payment. As with all tax matters, always consult with a tax professional before making any decisions.

Please call, text or email us with any questions you may have about financing or refinancing your home. We’re always here to help.

*The mortgage bond market is always paying attention to what the fed is doing, so expectation of future increases or decreases are usually already priced into the bond market.

 Kimberly Prat
 Supreme Lending 
Kimberly Prat
Senior Loan Officer 
NMLS# 386687
800 E Cypress Creek Rd, Ste 202
Ft Lauderdale, FL 33334
Office: 954.278.3430
Mobile: 954.295.7298
Fax: 954.756.8123
Kim.Prat@SupremeLending.com

The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in this message is the property of Supreme Lending and cannot be reproduced for any use without prior written consent. EVERETT FINANCIAL, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. Copyright © 2018. Not an offer or agreement. Information, rates, & programs are subject to change without prior notice. Not available in all states. Subject to credit & property approval. Not affiliated with any government agency. AZ Mortgage Banker License 0925918, AZ Principal Office: 25030 S 190th Street, Queen Creek, AZ 85142. Licensed by the Department of Business Oversight under the CA Residential Mortgage Lending Act License 4130655. CO Mortgage Company – Regulated by the Division of Real Estate. Delaware Lender License 10885. GA Mortgage Lender License 22114– Georgia Residential Mortgage Licensee. IL Residential Mortgage License MB.6760323-DBA1– Illinois Residential Mortgage Licensee. MA Mortgage Broker License MC2129. MA Mortgage Lender License MC2129. Licensed by the N.J. Department of Banking and Insurance – New Jersey Residential Mortgage Lender License. Licensed Mortgage Banker-NYS Department of Financial Service. NY Mortgage Banker License B501049. Ohio Mortgage Broker Act Certificate of Registration MB.804158.000. Ohio Mortgage Loan Act Certificate of Registration SM.501888.000. OR Mortgage Lending License ML-4265. Licensed Mortgage Banker by the PA Department of Banking – Pennsylvania Mortgage Lender License 45048. Rhode Island Licensed Lender 20142998LL.
 

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