PrimeWay Blog

It May Be Time for You to Refinance

Written by PrimeWay | Aug 27, 2015 3:00:00 PM

With talk about a possible Federal Reserve (Fed) hike in the prime interest rate...

...Janet Yellen has much of America scrambling to make sense of their savings. Many of us have the bulk of our money tied up in our homes, and any change in the prime rate brings with it one major question: "Is it time for me to refinance?" While no one but you knows the true answer to that question, we’ll do our best to explain what could happen and what it means for you, to help you make the best decision for you and your family.

Question: Why would the Fed raise the prime rate?

Answer: Unfortunately, we cannot guess all of the factors, but a good indication that rates might go up is the fact that rates haven't gone up since the Bush administration. Interest rates aren't supposed to be this low for this long. When rates are low, Americans are encouraged to spend more and this means more overall debt. The Fed may want to decrease the spending by raising the prime rate.