logo.giflogo.gifSince the Federal Reserve has lowered interest rates, the question arises for homeowners: Should you refinance your home loans?

The short answer is yes, and refinance.com provides a vast array of options and information to help you through this process. 

Although the reduction in interest rates does not mean that you will secure a much lower rate for your mortgage (because the current rate cuts are not what determine mortgage rates), you should still consider refinancing.  

The traditional rule is that you should only refinance if your new interest rate would be at least two percentage points lower than your current rate.  In today’s market, however, this rule is a bit antiquated.

Refinancing makes sense for two reasons:

1) The vast majority of homeowners who are facing financial woes have adjustable rate mortgages (”ARM”) that are soon going to reset.  It is a no-brainer for these homeowners to try a mortgage refinance and trade in the insecurity of an ARM for a fixed-rate mortgage.  Doing so will save them a lot of money and, possibly, foreclosure. 

2) Other homeowners who can secure a rate that is even half a percentage point lower than what they have can save anywhere from $100 to $150 per month.  In today’s “credit crunch,” that makes sense, too.  $100 to $150 is extra gas money. 

Thus, whether you’re a homeowner trying to get out of an ARM or one who’s simply trying to save money, considering a home refinance is a great idea.  Refinance.com allows you to find out your rate quote for free by either calling or entering your information directly on the website. 

The website also has additional valuable features, such as:

  • A Rapid Refinance program; 
  • Home equity loans;
  • Debt consolidation loans;
  • Helpful literature about the advantages of refinancing;
  • A refinance calculator;
  • A snapshot of current mortgage rates;
  • State-by-state mortgage refinancing information;
  • Information about mortgage refinancing programs; and
  • Other refinance-related programs.

Even though we’re experiencing a downturn in the economy, opportunities still arise.  Refinancing is one benefit of an economy in recession, and it helps us save money while times are tough.

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