Rate cut...

[ktheodos]

Wow....0% interest rate.....unbelievable....we truly are in unprecedented times!!!

[BATISTAGIRL663]

thats incredible !! i just hope things don't sky rocket when the virus is over !

[Tresbn00]

Not to be a negative Nancy but the rate cut doesn't do a lot for me. It will equate to a slightly smaller balance in my 401K and personal investments which would generally be offset by a move to a lower risk investment like a certificate of deposit but the interest rates for CD's do not compare to the current cost of living rates and I would take an even bigger loss. The lower rate should entice lenders to offer lower interest rates in order to encourage spending and borrowing but rate drops in the past have provided  marginal incentive for lenders to open up their lending practices. Refinancing our mortgage would require a one and three eights percentage rate decrease. I do not believe that interest rates will get down to one and a half percent. Our current rate is three percent and we have been paying on the mortgage for six years since the last refinance. I would also need to drop to a ten year term, so as not to diminish the principal paid, which most banks do not offer.

[wildpanda]

I think that this could easily be a bad thing. If the economy continues to get worse, then the Fed has lost lowering interest rates as a way to fight the slow down (unless they decided to get into negative rate territory).

[timvolley]

i did here about the 0* interest rate but it doesnt reallt affect me either

[alice44]

Right - I wonder who will take advantage of this benefit.  New mortgages??

[singletonb]

It is very important that folks read all the small print before they try to take advantage of any of this stuff.  However, we need to take advantage of what is out there that we need.

[oldbuddy]

Not to be a negative Nancy but the rate cut doesn't do a lot for me. It will equate to a slightly smaller balance in my 401K and personal investments which would generally be offset by a move to a lower risk investment like a certificate of deposit but the interest rates for CD's do not compare to the current cost of living rates and I would take an even bigger loss. The lower rate should entice lenders to offer lower interest rates in order to encourage spending and borrowing but rate drops in the past have provided  marginal incentive for lenders to open up their lending practices. Refinancing our mortgage would require a one and three eights percentage rate decrease. I do not believe that interest rates will get down to one and a half percent. Our current rate is three percent and we have been paying on the mortgage for six years since the last refinance. I would also need to drop to a ten year term, so as not to diminish the principal paid, which most banks do not offer.

Most loans have no penalty for early payment, so moving to a 10 year term could be accomplished  by simply  increasing what you pay, couldn't it?