Why you Should not Refinance Today
Have you heard? Home construction is down 27 percent from a year ago. The ripple effects can already be seen slowing the other sectors of the economy. Yes, this is a good thing for inflation, but what about the home owner? Will your home go up in value, decline in value? How will your home equity be affected?
Lets slow down and tackle these questions one at a time. Slower inflation means that the federal reserve won't increase interest rates, letting the potential buyer loan money from the bank without the sum being more expensive in terms of interest to pay back -- meaning that your home will retain it's value. However, too low of an inflation usually means that the economy is not growing, and may signal the fed to lower interest rates, making it cheaper to borrow money, and hence for the buyer to afford more expensive property, and hence for you to sell your home at a higher price.
So now, since the interest rate increase has been halted, at least for now, borrowing money against the equity of your home might not be the best idea. Following the current trend, the interest rates will most likely not increase in the near future, meaning that they are at their highest point right now, meaning that if you wait you might get a better deal.
What else does this slowdown in inflation and pause of interest rate hike mean? It means that things will not get more expensive, things like your everyday expenses. It won't cause a business to pay more in interest rates, the cost otherwise, past down to the consumer in terms of a price increase. Take for example a shipping company. If the cost of borrowing money for this company doubles, this company will have to charge its clients more money, it's clients possibly including food companies, that will increase the price of their produce in stores, electronic companies, that will increase the cost of their cameras, computers, cell phones in stores, and so on. Since this increase in price will not be necessary, with the expenses being stable, everyone will adjust their pricing strategy accordingly and will soon be making money again. But then, again, once there's extra money, there will be inflation, and the interest rates will rise, until it becomes too expensive for companies to borrow. And after a while the rates will fall, and the cycle will begin again.
Figuring that right now we're a the peak of the interest rates, it is probably in your favor to wait before borrowing money on your home equity, as if the interest rates start falling, you will be able to borrow more at a cheaper price, and who's not in favor of that?
Related Tags: home equity, home loan, refinance home, mortgage rate, refinance equity
Brenda Moore has gone through 3 laptop computers in her time. An HP Pavilion, a Dell Inspiron, and a Sony Vaio. She has received her Sony Vaio for free. You can see the resources she used to get a free laptop here: free laptop and choose between a dell laptop, sony laptop, or others.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are