We hope that you are excited about a brand New Year.  We also wanted to take a moment to address some changes that may affect you as a homeowner, buyer or seller in 2016.

First, after months of speculation, the Fed did raise its Federal Funds rate .25% in mid-December.  CNBC has an article which details what that may mean for you, if you're planning to buy a home in the beginning of 2016.   You may also take comfort in this statement from the article: "An increase from the current 4 percent on the 30-year fixed to 4.25 percent on a loans ranging from $200,000 to $300,000 would amount to less than the average borrower probably spends at Starbucks every month."

Second, homeowners who have a Home Equity Line of Credit (HELOC) with a variable interest rate will likely see a payment increase beginning this month.  That's because HELOCs with variable interest rates are tied to the Federal Funds Rate. The rate on your HELOC may also rise again, if the Fed raises rates again in the coming months, which many people expect. 

To that end, if you are in a variable rate HELOC, you may want to talk to a reputable lender about your options for refinancing into something with a fixed rate.  

If you need a referral to a reputable lender or broker, please give us a call. Likewise, if you're looking to sell your home and buy a new home, or buy your first home before rates increase again, please contact us.

It would be an honor to help you buy or sell a home in 2016.

Sincerely,