Fed Rate Stance May Save Consumers Tens Of Thousands This Year and Into 2004

Since the Fed decided to leave rates as is consumers find reason to save tens of thousands of dollars in home loan costs. How so?

(PRWEB) December 16, 2003 --For the average homeowner finding extra cash to pay down debt is the prime directive of the day. But trying to get past high interest rate charges and gradually eliminate debt can be be difficult.

One woman lamented, "I'd like to... pay off loans and credit card bills and end up with additional cash to invest in property. My husband just wants to leave things alone and pay our bills as we go along."

Paying off bills as you go along is fine as long as bills are actually being payed off. In many households this is not the case. Interest rates on credit cards and other loans may actually be eating up the larger portion of the bill payment.

But there is solution. Since the Fed decided to leave rates as is consumers find reason to save tens of thousands of dollars in home loan costs. Unlike credit cards, car payments and other forms of financing, mortgage loans on a primary residence are the least expensive form of borrowing for most consumers.

Among the many reasons to consider home refinancing as a means to save money are two primary factors. First are the tax deductions qualified borrowers can take advantage of. The other is the savings advantage of paying off a loan at a lower interest rate rather than several loans most of which are at a higher interest rate than the refinance loan.

No wonder the refinance rush endured almost two years or so. People got wise to an available interest rate savings system which saved some up to $100,000 or more. Still about 29% of homewoners have not refinanced. "For many homeowners this is an ideal time to refinance", says Mark Askew, President of The Financial Marketing Network. He adds, "Rates are at thier lowest levels. Since the rush to refinance has declined considerably loans may tend to close in a more timely manner."

Other advantages of home refinancing are listed at http://www.refinanceloanrates.fimark.net. Among them are as follows:

1. Lower your monthly payment.

2. Reduce your term and pay off your mortgage years sooner.

3. Save thousands in interest charges over the life of your loan.

4. Use a portion of your new mortgage to consolidate debts

5. Increase appraisal value of home by remodeling your home.

6. Reduce interest rate charges by taking advantage of the low mortgage rates that are being offered.

7. Changing from an adjustable rate mortgage to a fixed brings advantages. ARM's fluctuate with changes in the market rates. Your monthly payments are likely to go up as interest rates increase.

8. By switching to a fixed-rate mortgage, you'll enjoy the stability of a low, fixed rate that stays low.

9. A major benefit to refinancing is the ability to lock in a low interest rate for the duration of your loan.

10. By reducing the term of your mortgage you build equity faster.

11. Convert equity to cash.

12. Use the equity in your home to add living space in your home as your family grows

13. Refinancing with the cash-out option allows you to finance your spouse or children's education.

Refinancing your mortgage when rates are down could save you hundreds of dollars every month and tens of thousands over the life of your loan.

Check out the rate table at http://www.refinanceloanrates.fimark.net for low local rates.

Homeowners who have not refinanced or are seeking to refinancing a second time would do well to use the time saving tools online. Weigh the options carefully and see wether home refinancing will mean significant savings, debt reduction and more financial freedom.

For immediate release. No permission needed to publish this article.
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