Markets Personal Finance

Six Things You Should Do Now That the Feds Have Slashed the Interest Rate to 0% Amid Coronavirus

Dow Jones Industrial Average Trend

Remember the economic crisis of 2008? The car industry was merely bailed out, the housing market was crumbling, and it seemed like everyone you knew was losing his or her job? Well, it looks like the coronavirus is dragging us towards those exact same events. At the time, the federal reserve reduced the interest rates to boost the economy. If you haven’t heard yet, here it is, the federal reserve just slashed the interest rates to almost 0.

Now that the interest rate been slashed, what does that mean for you?

It’s time to think about what you want to achieve next with your money. Do you want to invest? Move around your 401K before it loses value? Pay off debt? We’ve got some ideas for you:

  1. Get your Tax Refund

First thing first, don’t delay your tax refund any further. You could be using your refund to buy some bargain stocks, houses at low rates and get a discount on this.

TurboTax will make your tax process easy. Here is a link to get started with TurboTax.

  1. Check your credit score and get a loan

You will need some cash to put down on a mortgage, on a car or to keep yourself going while the economy is struggling. If you have an excellent credit score, you can now get all types of loans at extremely low-interest rates. Start by checking your credit score.

If your score is not good enough don’t worry. Get started at BadCreditloans.com

  1. Buy a House or invest in Real Estate (Even If You’re Not A Millionaire)

It seems the looming recession won’t strongly be tied to real estate, but the 2008 recession definitely was. Most of us remember 2008 how home values suddenly plummeted a median price of $210,000 in 2006 to $166,000 in 2011. This left an astounding 10.7 million American homeowners behind on their mortgages payments, leading to people owing more on a property that it actually was worth.

Many people were forced to foreclose on their homes, leaving houses empty and allowing those in a position to do so to snap up houses for cheap.

This time won’t likely be any different. Here are the best mortgage lenders of 2020 according to US News that will give you very low interests.

Bank of America: Best Lender for No Minimum Loan Amount

Chase: Best Lender for Up to $3,000 Cash at Closing With a Grant and Education Course

Quicken: Best Lender for Borrowers With a Debt-to-Income Ratio of Up to 60%

SoFi: Best Lenders for Online Mortgages

Guild Mortgage Co.: Best Lender for 3% Down Loans

loanDepot: Best Lender for Borrowers With a FICO Score As Low As 500

PNC Bank: Best Lender for Loans Up to $5 Million

Veterans United Home Loans: Best Lender for Veterans Affairs Loans

 

 5. Buy some bargain stocks

Assuming you have already heard that the stock market is in a free fall, it is a good thing to ask yourself why, and whether there’s any investment opportunity for you. Every market correction creates opportunity, and financial planners say this one will be no different.

If you have money that you’ve been holding on the sidelines while waiting for an opportunity to get into the market, this is probably that opportunity, said Steven Gallo, a certified public accountant and personal financial specialist with U.S. Financial Services in Fairfield.

If you have never traded stocks before, here is a list of mobile apps to get you started

Acorns (“Invest Spare Change”): Best for Hands-Off Beginner Investors. …

Robinhood – Best Free Stock Trading App. …

Stay safe out there and happy investing!!

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