Rising Interest Rates and Selling Your Mortgage Note

2020-09-29T16:49:17-04:00

Do Rising Interest Rates Make Selling Your Note a Better Way to Secure the Cash You Need? During the financial crisis of 2008, the Federal Reserve Bank (the Fed) lowered the federal funds rate. The prime rate – the interest rate banks use to set lending rates for consumers – fell to encourage banks to lend money and spark growth. As the economy improved after 2008, the Fed gradually increased the federal funds rate to as much as 2.4%. (As of April 2020, the effective Federal funds rate is 0.05%.) How Do Rising Rates Affect the Economy? If the Fed raises [...]