Make informed lending decisions

Federal Rate Cuts Could Mean Big Savings for Some Homeowners

In recent months, the Federal government has cut interest rates to combat worrisome market conditions brought on by the quickly deflating housing industry and sub-Prime mortgage crunch. This course-correction is designed to inject the U.S. economy with liquidity and bolster the financial markets to avoid a spiraling recession.

Who Benefits

The Fed's action makes it easier for consumers and businesses to borrow money. And although borrowers with fixed-rate loans won't benefit much, those with variable-rate loans will pay less toward interest, freeing them up to spend money on other things.

What the Rate Cuts Mean

Consider: the interest rates on home equity loans and lines of credit have typically been lower than those for credit cards and auto loans. When you add the rate cuts to that equation, current homeowners and those looking into variable-rates benefit from decreased monthly payments.

Beyond the Cuts

The rate cuts aren't the only reason for considering a home equity loan or line of credit. These home loan products can help you save money in other ways.

Closing costs. If you don't have a home equity loan or line of credit, but you're considering one, take special note: With a home equity account your closing costs are traditionally smaller than those for fixed-rate mortgages; and with the Chase No Closing Cost^SM option, you won't pay closing costs at all.