Florida Mortgage : Learning Center

The Feds did decide to lower the expected Fed Funds rate yesterday by .25%, to a reduced 2.000% level.  This is the rate that banks charge on overnight delivery to each other; and not to be confused with a reduction in Florida fixed interest rate markets.  

However, you may find that you are saving money with respect to your Home Equity Line of Credit.   If you currently have a Florida Home Equity Line of Credit with an interest rate tied to Prime Rate; then you will be paying less as banks lower their Prime Rates as a result.  Today’s Prime Rate has been reduced to 5.000%.  If you need an Equity Line, now may be the time to call your local bank or mortgage professional for your Good Faith Estimate. 

Remember to compare interest rates, program terms, and ask about prepayment penalties.  Although they usually exist with Home Equity Lines of Credit; they are most likely just reimbursing the Florida taxes and small lender title search fees, etc.  If you need to see an accurate Good Faith Estimate for your new Home Equity Line of Credit call 888-399-0520.

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