With the recent crisis in the housing department, those lucky enough to be unaffected should take advantage of rates falling across the board. Lately interest rates for personal loans, auto loans, and mortgage loans have been sinking faster than a bombarded pirate ship.
Buying a New Vehicle
Interest rates at Ascentra Credit Union, for example, have fallen to 6.50 APY for a new car loan at 60 months. Members CU starts at 6.75% for the same thing. The three area banks don't feature their interest rates online - making it safe to assume they are significantly higher. Other local institutions feature similarly low rates. For those still stuck with a variable rate mortgage (and who deserve a better rate), now is the time to lock in a lower fixed rate.
Choose a Credit Union
One advantage to infomed consumers is credit unions. We recommend choosing a credit union for any refinancing or loans because they are democratically controlled (no stockholders!). Everyone who has an account at a credit union gets to vote at an annual meeting for who runs the credit union, and all the profits earned are given back to members in the form of better rates and lower fees - at a bank the profits go to a group of 10 or 20 stockholders instead.
Deposit Rates Falling
Generally, as loan rates fall, so do deposit rates. This is because the federal reserve, a government branch, lowers the federal funds rate (the rate at which banks borrow money) in an attempt to increase borrowing and conversly spending. While you'll be able to get some great rates on loans, don't expect much more than 4% for deposits.
Buying a New Vehicle
Interest rates at Ascentra Credit Union, for example, have fallen to 6.50 APY for a new car loan at 60 months. Members CU starts at 6.75% for the same thing. The three area banks don't feature their interest rates online - making it safe to assume they are significantly higher. Other local institutions feature similarly low rates. For those still stuck with a variable rate mortgage (and who deserve a better rate), now is the time to lock in a lower fixed rate.
Choose a Credit Union
One advantage to infomed consumers is credit unions. We recommend choosing a credit union for any refinancing or loans because they are democratically controlled (no stockholders!). Everyone who has an account at a credit union gets to vote at an annual meeting for who runs the credit union, and all the profits earned are given back to members in the form of better rates and lower fees - at a bank the profits go to a group of 10 or 20 stockholders instead.
Deposit Rates Falling
Generally, as loan rates fall, so do deposit rates. This is because the federal reserve, a government branch, lowers the federal funds rate (the rate at which banks borrow money) in an attempt to increase borrowing and conversly spending. While you'll be able to get some great rates on loans, don't expect much more than 4% for deposits.
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Take Advantage Of Sinking Interest Rates