Bankers in North-Central Wisconsin say they have been getting a lot of calls since the Federal Reserve cut interest rates this week. Most people are asking if they should re-finance their mortgages right now.
"Every time you refinance, your monthly payment goes down," says People's State Bank Vice President David Svacina, discussing the effects most homeowners would see first. "So then the consumer has more spending money."
So people who do not plan to move and can shorten the length of their mortgage by refinancing, might want to consider doing so.
Svacina says people taking out other types of loans would also save money.
A good rule of thumb is to check with a banker you trust, and to shop around for the best deal.