Wednesday, May 04, 2005
Yet another rise in the Prime Rate
As you probably know if you follow my blog, I periodically post when the Wall Street Journal updates the prime rate. As of May 3rd, the new prime rate is up to 6.00%, a 0.25% increase from the last update (March 22nd). This is the 8th straight 0.25% increase in the last 2 years.
What this might mean to any borrower who has a second mortgage that is tied to the prime rate and has some equity in their house, is that it's time to refinance. While the prime rate is still relatively low historically, if you have 20% equity in your home and still have a second mortgage that adjusts when prime does, you may want to refinance your first and second into one loan while interest rates remain low.
What this might mean to any borrower who has a second mortgage that is tied to the prime rate and has some equity in their house, is that it's time to refinance. While the prime rate is still relatively low historically, if you have 20% equity in your home and still have a second mortgage that adjusts when prime does, you may want to refinance your first and second into one loan while interest rates remain low.
