Year-End Gift From Feds
The Federal Reserve lowered interest rates today for the third straight meeting this quarter. What does this mean for the consumer? It means that if you are looking to get the best mortgage rates you need to act now! Since Sept. 18th the Federal Funds Rate has gone down 100 basis points. If you have a loan tied to the Prime Rate - this means your rates have been lowered a full point. For those seeking new financing you must act now to take advantage. Despite this latest cut - it appears rates could actually increase in early 2008. Why? Fannie Mae and Freddie Mac have announced loan level price adjustments that are already starting to show up on lender’s rate sheets. LLPA’s are automatic penalties that can tack on costs in the form of points or higher rates for almost anyone with a FICO score less than 720.
