The Federal Reserve meeting ended today with Ben Bernanke and company lowering the Federal Funds rate and Discount Rate. The Fed Funds rate is for Banks to trade with each other on overnight lending. This dramatic, yet overdue, move should influence the interest that Florida homeowners pay for debts such as credit card, car loans and of course mortgage loans.

Historically the T-Bill, Treasury Index, follows the Fed Funds rate movement. So an improvement from Bernanke might ease the adjustment pains many are experiencing while their adjustable rate mortgages reset. Hopefully, Florida homeowners can use this extension of lower payment adjustments to improve their credit scores for future refinance requests. Or at least allow everyone more time to shop for their refinance needs especially when seeking fixed rate mortgage financing during this time of tightened underwriting guidelines. I expect these guidelines to loosen up a bit; we’ll have to wait and see. Of course your best move as a Florida homeowner, is to call or email a mortgage professional for answers to all your mortgage related needs.

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