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Refinancing to Save: Borrowers Pocket $3 Billion in the First Year

Posted by  on Apr 01, 2010
 

Best Mortgage Rates Still Available

Although rates have been inching up and down a little, they remain extremely close to the all-time record low. Indeed, Freddie Mac announced Monday that during January through September 2009, 30-year, fixed rate mortgages averaged 5.1 percent. Those are the best mortgage rates over that period of time since 1971 when Freddie Mac first started its tracking exercise.

And some of the best mortgage deals ever are still out there to be found.

Home Refinance a Real Winner

Those who undertook a refinancing in 2009 have every reason to feel pleased with themselves. Freddie Mac's Monday statement went on to say that half of homeowners who refinanced during the third quarter of 2009 lowered their annual mortgage interest rate by 17% or more, for example, dropping from 6% to 4.98%. And that's going to save those borrowers more than three billion dollars in just the first twelve months of their new home loans.

There's still time to take advantage of this cash bonanza. If you're interested in obtaining a mortgage quote--either for a refinancing deal, or a new mortgage--click here now.

You Won't Be Alone

More and more people are realizing that home refinance is for them. The Mortgage Bankers Association (MBA) published its weekly survey of the mortgage market this morning. And it found that the Refinance Index (the volume of refinancing applications) was up 14.5% on last week.

It's true that this jump was after a few weeks of low activity, but it may well be indicating a trend that's re-establishing itself. Certainly, the MBA snapshot showed that refinancing accounted for two-thirds of all mortgage applications.

Refinance without Equity

Frank Nothaft, who is a Freddie Mac vice president and its chief economist made an important point. He said:

"At the beginning of the year, only borrowers who still had a solid equity cushion could take advantage of the low mortgage rates, but through the Home Affordable Refinance Program that got underway in April, borrowers who have a loan owned by Freddie Mac or Fannie Mae can refinance that loan even if they have no home equity. As of August 31st, over 93,000 borrowers had taken advantage of this opportunity according to the Federal Housing Finance Agency, with the bulk of those occurring in July and August."

Whether you can refinance the old fashioned way, or take advantage of the Home Affordable Refinance program, today's low rates won;t last forever. Now is the time to see what you qualify for and how much you might save.

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