I always like interest rate cuts

I have a fairly large HELOC and some flexible mortgages moving with the interest rate. Every time there is an interest cut, there is some money saved, or it can be considered as raised rent, tax cut, whatever. This month there is already a 0.5% cut, if there is another 0.25% cut next week, that is a total of 0.75% cut. For every $100K HELOC, that is $750 interest saved every year. Plus, that $750 can be used to pay down the same amount of principal, further reducing the interest that needs to be paid. So all in all, that feeds into a positive loop.

Also, interest rate cuts help the RE price, either by increasing price, or stabilizing price, or slowing price decrease. So equity will increase as a result, and the ability to increse HELOC at the end for more buying power.

所有跟帖： 

• 我能体会有多高兴 : ))) -江城游子- ♂ (138 bytes) () 10/19/2008 postreply 16:55:43

• OMG，哪有这样砍的！ -cultuslake- ♂ (34 bytes) () 10/19/2008 postreply 17:19:15

• 呵呵呵、、、俩位兄弟能否带上俺同乐哈！ -小小石头- ♂ (0 bytes) () 10/19/2008 postreply 17:43:32

• 石头最高兴 !!! -江城游子- ♂ (0 bytes) () 10/19/2008 postreply 17:46:46

• co：石兄最高兴 !!! -cultuslake- ♂ (10 bytes) () 10/19/2008 postreply 17:48:30

• 澳洲利息可能最高 -江城游子- ♂ (43 bytes) () 10/19/2008 postreply 17:45:21

• 够高的 -cultuslake- ♂ (52 bytes) () 10/19/2008 postreply 17:49:57

• 米国可怜，已经1.5%没啥好砍了。 -小小石头- ♂ (0 bytes) () 10/19/2008 postreply 18:07:28

• 1.5% 不是prime，米国prime现在是4.5% -cultuslake- ♂ (0 bytes) () 10/19/2008 postreply 21:04:01

• 江兄最近又添了几栋房子？ -QinHwang- ♂ (0 bytes) () 10/19/2008 postreply 18:21:32

• 问教授好! 还是房事比较安全。 -江城游子- ♂ (495 bytes) () 10/19/2008 postreply 20:15:37

• 从长远看RE还是比较稳当。希望那块地将来能给你赚大钱 -QinHwang- ♂ (0 bytes) () 10/19/2008 postreply 22:36:43