9 ways to take advantage of today's low interest rates
Ways to take advantage of low interest rates include refinancing loans, selling bonds, and buying property. CDs, corporate bonds, and REITs offer the best investment income options when interest rates are low.
Low interest rates are challenging for income investors, as fixed-income assets pay less. Among banking products, CDs and online savings accounts offer better yields. Corporate, municipal, and junk bonds offer higher rates than US Treasuries, at varying degrees of risk.
Taking advantage of low-interest rates can pay-off in the near future. It'll not only help you save on monthly interest payments but also provide you with peace of mind and better financial standing in the future.
Read our 5 steps on how you can negotiate a lower interest rate on your home loan.
Who Benefits From a Low Interest Rate Environment? The Federal Reserve lowers interest rates in order to stimulate growth during a period of economic decline. That means that borrowing costs become cheaper. A low interest rate environment is great for homeowners because it will reduce their monthly mortgage payment.
If the economy is slowing, the Fed can lower interest rates to make it cheaper for businesses to borrow and invest money and create jobs. Lower interest rates also tend to encourage consumers to borrow and spend money, helping to spur economic growth.
Despite low returns, near-zero interest rates lower the cost of borrowing, which can help spur spending on business capital, investments and household expenditures. Businesses' increased capital spending can then create jobs and consumption opportunities.
The Best Safe Investments For Your Money
For example, certificates of deposit (CDs), money market accounts, municipal bonds and Treasury Inflation-Protected Securities (TIPS) are among the safest types of investments. ... Money market accounts are similar to CDs in that both are types of deposits at banks, so investors are fully insured up to $250,000.
Contact your lender or broker and ask for the rate lock. Provide a time frame, too. Review your new Loan Estimate. Your lender's new Loan Estimate should clearly say the interest rate can't increase unless the rate lock expires.
Americans planning to buy a new or used car in 2021 can expect to see interest rates fall even further than they did in a chaotic 2020. Meanwhile, the average 48-month used car loan rate fell from 5.33 percent to 4.88 percent. ...
Home buyers taking advantage of low interest rates can put down less money than they think. Low interest rates are making monthly mortgage payments more affordable, but down payments are often the biggest obstacle to buying a home. ... Borrowing money for a home is cheaper than it has ever been.
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