Economists are urging Americans to refinance to take advantage of historically low refinancing rates. These low rates were driven by the Fed’s stimulus efforts and won’t last long.
Savvy homeowners are taking advantage and strike while the iron is hot to maximize their long-term savings.
- Refinancing rates are at historic lows: The Fed artificially suppresses interest rates to keep them low. Please note that these rate suppression programs may end sooner than expected. Jerome H. Powell, the chairman of the central bank, recently said: “When the time comes to raise interest rates, we will definitely do it.”
- Rates will go up: It’s inevitable and it’s only a matter of time before rates start to rise again. They may even rise at the next Fed meeting. Bob Broeksmith, president of the Mortgage Bankers Association, almost guaranteed they would rise, stating that “with mortgage rates well below 3 percent but expected to rise slowly this year, many homeowners are acting now.”
- This can save you a lot: Average in January 2021 CreditTree users saved more than $38,000 over the life of their loan through refinancing.
- Mortgage rates are pegged to Treasury bond prices: This means that Treasury yield trends could drive up mortgage rates. If bond yields increase, mortgage rates will also increase, says Matthew Speakman, a Zillow economist.
- There is no risk, you can watch for free: Using CreditTree, you can compare rates tailored to you and see how much you can save for free. Our easy to use form only takes 2 minutes and does not require hard credit.
When lenders compete, you win. Match up to 5 offers and calculate a new payment. In addition, a recent study found that shopping can have a bigger impact on the rate than a buyer’s credit score or down payment. Seize this refinancing opportunity and finally cross your mortgage savings off your to-do list.
Here’s how to get started:
Step 1: Get started by clicking on the map below.
Step 2A: After you answer a few questions, you will have the opportunity to compare quotes from multiple lenders!