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Okay the feds are cutting their interest rates as they have no choice.However us consumers if we want to refinance get it at double that rate if you include the closing costs.Who gets cheap money here?
Ummm... the banks. The FED does not lend money to consumers.
That Coke you buy for $1/can does not cost the vending machine company $1/can. The price they get it at is also not the price that it costs Coke to make that can. Its call a markup, its how business make profit.
The FED lends to the biggest banks, and sets rules for how banks can lend to each other. They pass it along several lenders and eventually it gets to consumers (or comes from deposits at those banks). The banks pay 1% to borrower your money as checking deposits, but they sure do not lend it at 1%. They need to cover the risks of default from people who do not pay back the loans, their overhead and make a profit.
Welcome to capitalism and free markets.... and why do consumers deserve cheap money? If you want 0% interest, you can earn the money and not borrow it from a bank.