As rates drop like the prices at the gas pumps, people re-evaluate the choices between staying in their current home and purchasing a new one. You can maintain control over your options as long as you know, understand, and follow the trends.
When mortgage rates dropped to the lowest levels in almost a year, Warren Zeger seized the opportunity to slash $720 off his monthly mortgage payment by refinancing his home in Potomac, Md.
Just don't expect him to spend the savings.
"I'd love to tell you I'm going to spend it to help prop up the economy, but we've tightened our belts," said Zeger, 61, a retired attorney. "I plan on holding on to it."
Zeger echoed homeowners The Associated Press interviewed nationwide who have taken advantage of lower rates since Nov. 25th. They planned to stuff the money they saved under the mattress or pay off bills. Refinance activity has surged as interest rates tumbled about 1 percentage point to around 5.5 percent in response to the Federal Reserve's plan to scoop up $600 billion of mortgage-related securities.
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