Despite six interest rate cuts from the Fed since September, home owners are finding that interest rates on their home mortgages are actually going up. This is also affecting those who need to get a home mortgage. “We spend a lot of time telling people it’s not the right time,” said Gus Pasquale, co-founder of Element Funding, a residential lender in West Palm Beach.
Many home owners are trying to refinance their home mortgage in response, but it’s been difficult for many. Banks are tightening up their lending requirements and many are stuck with a high rate. However, experts are encouraging those with variable rate home mortgages to do all they can to refinance. “My rule of thumb is if it saves you money or puts you into a fixed mortgage from an adjustable, take it,” said George Richardson of PayZero Mortgage in Fort Lauderdale. “You don’t know what you’re going to have tomorrow.”
Even though the current rate cut from the Fed specifically targeted variable rate home mortgages, it will be up to the banks to lower their own rates. Many are unwilling to do this and home owners are now stuck in the middle.
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