Iowa home sellers are among those elated with Wednesday’s cutting of interest rates by the Federal Reserve Board. Mike Raye, president of the Des Moines Area Association of Realtors, expects a boost in business as he says good news always stimulates activity.The national average interest rate for 30-year mortgages fell to six-point-81 percent Wednesday, down from eight-point-five percent in August. The interest rate cut may encourage some Iowa homeowners to refinance their mortgages, according to Raye. Refinancing a home can cost one-to-three-thousand dollars, depending on the home’s value, but the procedure can save a bundle of money in the long run. Raye says interest rates need to drop far enough to make the effort of refinancing pay for itself. He says it takes a drop of one and three-quarters to two percent to make refinancing your mortgage worthwhile.Mortgage rates are now at a two-year low.
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