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Mortgage Refinancing Resources
July 18, 2015
There was a time when owning a home was part of the American dream. However, during the financial crisis of 2007-2008, for many owning a home turned from a dream into a nightmare, thanks to unscrupulous mortgage brokers and homebuyers overreaching their finances. While the news headlines tout an improving housing market with robust demand and ample supply, the U.S. Census Bureau reported that the homeownership rate in the first quarter of 2015 fell to 63.7%, the lowest since 1990.
Of course, for most, “homeowning” also means carrying a mortgage. Since 2009, the federal funds rate—the short-term rate objective of the Federal Reserve—has been near zero. This has also resulted in historically low mortgage rates. With each passing meeting of the Federal Open Market Committee, the policy-making board of the Federal Reserve, it seems likely that an interest rate increase is going to happen sooner rather than later, perhaps before the end of the year.
If you have a mortgage and have not taken advantage of refinancing in order to capitalize on low interest rates, your window is closing. Earlier this year, I refinanced my mortgage when my initial 7/1 adjustable-rate mortgage started floating. While my rate actually dropped once it started floating, I was able to lock in a low rate for the next 30 years, saving myself several hundred dollars a month in the process.
In this installment of On the Internet, we highlight some useful resources for those embarking on the mortgage-refinancing path. Also, be sure to check out Computerized Investing’s own mortgage refinancing calculator.
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