Five ways the Fed rate cut may affect you
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The Federal Reserve, also known as the “Fed”, decided to cut interest rates for the first time in over a decade. What does that mean for you? For most people, the rate cut just won’t have a big impact.
- Mortgage rates were already on the decline in 2019. You might consider refinancing if you recently purchased a house. Ascend is currently offering great rates. Check our “Time to refinance?” calculator to estimate your potential savings. If you have a home equity line of credit (HELOC) with a variable rate, then you should see your interest rate decrease in the next few months.
- If you have a non-Ascend credit card with a variable rate, your annual percentage rate may drop. WalletHub estimates that credit card users will save about $1.5 billion in interest. Expect to see the difference in two-to-three billing cycles if you experience a reduction. If you’re interested in switching to a credit card with a great fixed rate, check out our Visa® Platinum Rewards card.
- Auto loans may see rates dip slightly, but the cost savings may not be very noticeable. For instance, a drop from an interest rate of 4.35% APR to 3.99% APR on a $30,000, 60-month term, would save less than $5 per month. Use our auto loan calculators here to determine your potential individual savings.
- For those with saving products like Money Market accounts or Certificates, rates typically decrease.
- If you’re a private student loan holder, you could see your interest rate go down as well. However, federal student loans are set on a fixed rate and would be unaffected by this cut.