Fed rate cut to help CT homeowners in trouble
This week?s prime interest rate reduction by the Federal Reserve could make a big difference for some Connecticut homeowners who have been victimized by predatory lenders, according to a local expert.
Federal Reserve Chairman Ben Bernanke cut the interest rate half a percentage point, down to 4.75 percent. It was the first cut in four years.
John Gerlach, professor of finance at Sacred Heart University, says the cut will help those on the verge of foreclosure and homeowners with floating rate mortgages.
Gerlach said the half-point cut will not change rates on fixed mortgages, but it will directly affect adjustable mortgages. He said the rate cut will bring down most home equity, student and credit card loans that are tied to the prime rate.