When to Refinance a Mortgage

Refinancing a mortgage can be a huge cost saver for homeowners. And right now could could be a great time to refinance. For a little recent history, the Federal Reserve had started cutting the federal funds effective rate last year, with signs that the economy was starting to slow down. With the massive economic threats posed by the coronavirus pandemic, the Fed decided to drop rates all the way down to 0.05%. This rate is directly tied to the rate that banks charge their prime customers (aka “the prime rate“), with ~3% added on top. And prime rate is correlated The post When to...

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