Which St Cloud Homeowners Benefit From The Rate Cuts

Which St Cloud Homeowners Benefit From The Rate Cuts

When interest rates were cut after the Fed’s July meeting, the press was quick to point out that not every homeowner would benefit from the move. As Bankrate.com noted in its lead article How the Fed’s Interest Rate Decisions Affect Mortgage Rates, “the majority of Americans won’t be affected.”

That’s true—for the moment. But for some St. Cloud homeowners, by last week, the immediate effects constituted good news. The Bankrate commentators touched on some of the traditional brain-teasing economics behind the effects (“there is an inverse relationship between bond prices and yields”)—but the practical repercussions were more straightforward. Mortgage lenders reacted with rate cuts, so:

  • Benefits flowed to the “winners of the rate cut”—some home loan borrowers with adjustable-rate mortgages (ARMs).

  • Also benefitting were those using home equity lines of credit (HELOCs).

  • Current fixed-rate mortgage holders may be able to cut their mortgage payments via refinancing.

  • Possible beneficiaries will be homebuyers whose budgets could now stretch to fit pricier homes.

The reason only some ARM holders will benefit immediately is because these loans usually adjust annually—and some don’t adjust for the first two, three, five (or even seven) years.

The Bankrate piece linked to another article, from way back on June 3rd. It described how “nearly 6 million people can now cut their mortgage payments with refinancing.” That was after May’s “sharp drop in rates” (which came as a surprise) was “nearing 4%.” At that time, it was estimated that a typical refi would save U.S. mortgage holders an average of $271 per month. With last week’s typical rate in the 3’s, it’s clear that those who held off in June might well see even greater savings.

The actual benefits for St. Cloud homeowners are an individual calculation. As always, I’m more than happy to discuss any of your St. Cloud real estate plans. Call me!


Ballpoint Pen on Top of White Printer Paper Beside 100 U.s. Dollar Bill


Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in: 

Five Office Locations To Serve YOU!

St. Cloud      320-259-4554
Princeton      320-983-3555
Maple Grove 763-565-2000
Hutchinson   320-455-9127
Litchfield      320-298-1140

 

Premier Real Estate specializes MANY areas around Central MN including St. Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, St. Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, St. Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center and more! 


Noel Johnson Headshot
Author:
Phone: 320-980-3100
Dated: August 23rd 2019
Views: 97
About Noel: Passion for investing in real estate brought me to create Premier Real Estate Services in 2002. Ten ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

John Pearson
550 25th Avenue North
St. Cloud, MN
320-267-5588


Other Locations