Sensationalized Rate Cut Is Annoying Me
A 'Jumbo' Cut?
While troubleshooting internet issues today, I typed cnn.com into my browser and saw this
“YES!” I thought, “Finally!”
I was super excited. After my divorce, I went from a 2.75% mortgage split with my wife to a 6.25% mortgage that I had to cover all on my own. Dang!
But now, finally, the Fed is starting to cut rates, and seeing that it was “JUMBO”, I was excited and curious to see how much. 1% maybe!?
Meh....
A half percent or 50 basis points is great, but it’s certainly not “Jumbo”. C’mon media outlets. It’s literally one step more than the bare minimum of 0.25% (eyeroll).
Anyways, it’s a good sign. I am going to wait probably another year or so to try and refinance. It will be obvious when the time is right. I’m sure the Fed will make it pretty clear when they are bottoming out on interest rates. Maybe rates will go down to 3% or so over the next couple of years. That would be fantastic.
By the way, a 1% drop in a mortgage rate could save maybe around $100/month, and thousands of dollars over the life of the loan! I am looking forward to that!