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The Federal Reserve (FED) has announced an upcoming interest rate adjustment of around 0.25% later this month. If you’re a homeowner thinking about refinancing or a potential homebuyer in the Chicagoland area, this is important news. Understanding how these rate changes impact you can help you make smarter financial decisions.

What Does the FED Rate Adjustment Mean for You?

Historically, when the FED adjusts interest rates, it often leads to changes in mortgage rates as well. In this case, the expected rate drop could mean lower mortgage rates, making it a great time to consider refinancing your current home or buying a new one.

Lower rates can lead to significant savings over the life of your mortgage. For example, even a small drop in interest rates can reduce your monthly payments or allow you to pay off your loan faster.

Example: How Refinancing Can Save You Money

To see how much you could save, let’s look at a real-world example:

  • Current Loan: $300,000 at a 30-year fixed rate of 7.00%
  • Refinanced Loan: $300,000 at a 30-year fixed rate of 6.50%

If you refinance from a 7.00% interest rate to 6.50%, your monthly mortgage payment could drop from $1,996.98 to $1,896.20. That’s a savings of $100.78 every month!

Over the full term of the loan, this reduction could save you a total of $36,280.80. These kinds of savings can make a big difference in your overall financial picture, allowing you to allocate those funds towards other goals or investments.

Timing is Key: Don’t Rush Into a Decision

While this upcoming rate drop is good news, it’s important to remember that rates are expected to continue falling into 2025. That means if you act too quickly, you might miss out on even better rates in the near future. Some lenders might push you to refinance or buy now, but it’s essential to take your time and consider your options carefully.

This is where working with a trusted mortgage professional, like Dan Larkin at LeaderOne Financial, can make a big difference. Dan can help you navigate these changes and find the best solution for your unique situation, whether you’re looking to refinance or buy a home for the first time.

Beware of Cold Callers

After the rate drop, you might start getting calls from lenders trying to rush you into a decision. These cold callers often focus on making a quick sale rather than helping you find the best long-term financial option. Jumping into a refinance or home purchase too soon could mean missing out on better rates later, or even needing to refinance again in the near future.

Work with a Mortgage Professional You Trust

Making the right choice about your mortgage requires careful planning and advice from someone who understands the market. Dan Larkin at LeaderOne Financial is dedicated to helping homeowners and buyers in Chicagoland make informed decisions. By working with Dan, you can ensure that you’re getting the best possible rates and terms, tailored to your needs.

Remember, the upcoming FED rate adjustment is just one piece of the puzzle. With rates expected to continue dropping into 2025, having a trusted professional by your side can help you navigate these changes and save money in the long run.

If you’re thinking about refinancing or buying a home, reach out to Dan Larkin at LeaderOne Financial today. He’ll work with you to find the best timing and options to meet your financial goals.