For the first time in history, the world's third-largest country just cut interest rates below zero.
The country isn't important. What's important is the trend – and it's a trend we need to take advantage of. As unbelievable as it sounds, it's a trend that is likely coming to the United States in the near future.
Below, I'll show you exactly what you can do to make this unprecedented act work in your favor…
"Almost a quarter of the world's gross domestic product (GDP) now comes from countries with negative rates," According to an article in The Economist magazine this week.
In Sweden, for example, when you put your money in the bank, you don't EARN interest anymore. Instead, you have to PAY more than 1% a year just to keep your money in the bank.
Can you believe it? THAT is what negative interest rates look like.
When you think about it, the immediate results of negative interest rates are pretty obvious…
"Savers" get clobbered. Retirees lose money on their savings. It's terrible.
People borrow money. Hey, it's 'Free.' Why not get some.
The cheap and easy money causes asset prices to go up. And why wouldn't they? What do people do with free money? They buy stuff.
Yes, our Federal Reserve recently RAISED interest rates, which caused the recent selloff in stock prices. But the Fed is likely done raising interest rates this year.)
So… what should you do to take advantage of it?
Just about all of us should start right at home…
Right now, the current national interest rate on a 15-year mortgage refinancing is 2.84%, according to www.BankRate.com.
U.S. housing is cheap (relative to the rest of the world, and relative to its own history).
House prices had their worst crash in generations, and now they're recovering. This is the safest moment.
Meanwhile, mortgage rates are not far from record lows. You must take advantage of this.
If you haven't done so already, refinance your house. And if you don't currently own a house, go buy one… Seriously.
30-year mortgage rates in the U.S. are in the 3.8% range. And 15-year mortgages are in the 3.1% range. These rates are not far from all-time record lows.
Don't get 'TAKEN' by ultra-low interest rates. Instead, consider taking advantage of them, starting right at home.
Call me if I can help in any way.
On Your Team,
Ken
951-760-3833
KenAHall@gmail.com
