As you prepare for the Federal Reserve to increase rates in the years to come, you may want to leverage the existing low interest rates while they last and take advantage of this unique opportunity.
1. It’s time to act and leverage existing low interest rates
Consider your long-term goals. For example, are you considering refinancing, taking out a car loan to buy a new vehicle, or purchasing a second home–maybe that vacation home of your dreams? If you’ve been waiting for the right time to strike, you might want to speed up that timeline before rates rise…again.
Today’s rates won’t hold for long. So waiting may actually cause you to pay more later. Next year or the year after, you may be faced with a higher interest rate which makes achieving your financial goals impossible.
Golden Oak Lending is here to help you decide what you can afford now and what actions make the most sense for you, such as:
- Refinancing now—and locking into a lower rate for the long term
- Purchasing that vacation home sooner, rather than later — because it actually is within your reach now, but may not be if you wait
- Using a loan instead of your savings to finance that wedding or college tuition
2. Slow and steady win the race
Although the idea of being debt-free is attractive, there’s no rush to pay off loans for which you have a low interest rate—such as your home and student loans (particularly when they are tax-deductible).
3. Wisely pass along wealth to your family
Because the government taxes monetary “gifts” you grant to your family members, periods of low interest rates like now are an ideal time to transfer your wealth. You may use what’s known as an intra-family loan to pass on your hard-earned dollars at a lower interest than determined by the Internal Revenue Service.
Consult a financial expert at Golden Oak Lending today to learn more about how to take advantage of today’s economic climate.