2007-12-10 11:02:23 · 4 answers · asked by jon 2 in Business & Finance ➔ Credit
They will not unless you have a line of credit that are speaking of as well. The lowering of the fed rates lowers Home Equity lines of credit, credit cards, and anything else attached to the "Prime rate." Confusing, I know, but mortgage rates are not attached to that index. They are attached to mortgage backed securities, which are positively affected by these rates. Your rate will not change until you reach your first adjustment which can be clarified by reading your "note" from your closing...
2007-12-10 11:11:41 · answer #1 · answered by FinanceGuy 2 · 0⤊ 1⤋
They WON'T. Unless the loan has already adjusted at least once, you are currently paying below the spread your rate will INCREASE to the first time it adjusts. The rate set by the Federal Reserve is the rate at which they lend to banks. Your rate is tied the the prime rate banks use to lend to their best customers. These are NOT the same rates.
Even if they will affect your payment, your rate adjusts on the dates set in YOUR loan contract. Changes in the FED rate have ZERO effect on the timing of the adjustments.
2007-12-10 11:10:20 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
Just because the Federal banking Rate hes been lowered it does not mean they must or will pass that lower rate on to your loan.
2007-12-10 11:11:25 · answer #3 · answered by Jan Luv 7 · 1⤊ 1⤋
i would suggest you ask your loan originator this question as they are the ones that would have all the information..
2007-12-10 11:34:01 · answer #4 · answered by SMD 2 · 0⤊ 0⤋