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Make interest rates work for you

Finance

ROCHESTER, N.Y. (WROC) — Now is a great time to take advantage of lower interest rates if you are looking to borrow money.

CPA Scott Adair discussed why rates are low and what that means for you Thursday during News 8 at Sunrise.

“The Federal Reserve has to go through a process regarding interest rates, probably on a quarterly basis they do this, to take a look at where the economy is heading,” Adair explained. “Interest rates are currently low in an effort to spur the economy forward, to make sure that there is money out there to loan and to create jobs, and to create a better economic environment for everybody.”

The Federal Reserve benchmark interest rate is currently in the range of 0 to 0.25 percent.

There are several ways for people to take advantage of lower rates. “For individuals, the primary one is to take a look at probably your biggest asset being your house and look at your mortgage interest rate,” Adair said. “Now may, in fact, be a good time to kick the tires on that to determine whether or not you should look to refinance it, or if you have an adjustable-rate mortgage to lock that rate in for the longer period of time.”

Lower interest rates are not a welcome sign for savers. “It certainly reduces the interest rate that you’re receiving on any savings account balances that you have or any CDs that your have,” said Adair. “It’s a good time to sit down and take a look at your finances, take a look and sit down with your CPA to determine what course of action should be for you because each individual’s case is different, but I think the big message here is to make sure you’re staying your financial course and meeting with your CPA to talk about that course is paramount to getting you to the finish line regarding retirement and financial success in that endeavor.”

For more “Smart Money” advice visit the New York State Society of CPAs website at nysscpa.org/getmoneysmart.

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