AP
Chair: Fed Ready to Cut Interest Rates
Thursday January 10, 12:36 pm ET
By Jeannine Aversa, AP Economics Writer

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke pledged Thursday to slash interest rates yet again to prevent housing and credit problems from plunging the country into a recession.

The Fed chief made clear the central bank was prepared to act aggressively to rescue a weakening economy. "We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks," he said.

        The economy is heading for problems, there is no doubt.  However, amazingly, the Fed target is between 2.5% and 3.25% for Fed Funds, which means WE WOULD SEE 3.5% TO 4.25% MORTGAGE RATES (pegged to prime), LETTING US PAY OFF OUR PRINCIPAL MULTIPLE TIMES QUICKER THAN NORMAL.

We are already seeing client with an average mortgage payoff of 8-15 years due to rates at 5.25% currently.  Plummeting Prime will yield between $25-100,000 mortgage interest savings by (finally) the truthful, real economic news penetrating our market today (yes- watch Countrywide's spiral).

For a Payoff Simulator on your personal mortgage numbers, I will respond within 24 hours.

Andy Schmidt  602.371.8600 ACSchmidt4@aol.com

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