U.S. consumers are taking advantage of historically low rates by refinancing their homes, not once, but twice, says Quicken Loans CEO. Spurred by the Federal Reserve's continuous interest rate cuts and the U.S. Treasury's suspension of 30-year bonds last Wednesday, the number of double refinances this year may continue to increase.
According to Dan Gilbert, CEO of Intuit's (INTU) Quicken Loans, a leading online mortgage lender and one of the top 30 largest retail mortgage lenders in the U.S. from among 40,000+ lenders, Quicken Loans has observed a double refinance trend this past year as interest rates have fallen to the lowest they've been since the '60s.
"The stars have aligned for homeowners," said Gilbert. "The economic slowdown caused the Federal Reserve to drop rates dramatically. Mortgage rates reached record lows earlier this year, leading many homeowners to take advantage of rates through refinancing. Now, with the Treasury's announcement, another star has come into place and rates have fallen to lows not seen in generations, which may spur some homeowners to refinance again."
After seeing rates decline, Scott Sommers, a Michigan resident, decided to refinance his home this past summer. In an effort to consolidate his first and second mortgage, which he had taken out at purchase to avoid private mortgage insurance, Sommers was able to reduce his monthly mortgage payment by about $150 - $200 a month. After watching rates continue to drop, Sommers decided to refinance again this Fall, trimming down his monthly payment from $1,235 to $1,186 a month, a $600 a year reduction.
The calculators at the Quicken Loans Refinance Center - found at www.quickenloans.com/mortgagetools.asp -- can help individual consumers determine their monthly savings by refinancing.
Refinancing a home, regardless of whether it's a first or second refinance, can bring a wealth of benefits to consumers including a lower mortgage rate, reduced monthly payment, shortened mortgage term, and the elimination of private mortgage insurance.
MEMO to Editors: Quicken Loans experts are available for interviews today or tomorrow in conjunction with Tuesday's anticipated Fed action. Quicken Loans can also help you obtain interviews with recent customers across the United States. Contact Elizabeth Jones at 734/805-7137 or via e-mail at Elizabeth_Jones@QuickenLoans.com or Claudia DeMordaunt at 734/805-7977 or Claudia_DeMordaunt@QuickenLoans.com.
About Quicken Loans
Quicken Loans (previously known as Rock Financial Corp., owner and operator of RockLoans.com), a leading provider of direct-to-consumer home loans on the Internet, offers mortgages in all 50 states and the District of Columbia. The company provides a wide variety of home financing options including conventional, sub-prime, home equity, government and jumbo loans.
Quicken Loans combines cutting-edge technology and high touch personal service to give consumers a convenient one-stop home and mortgage shopping experience on the Internet. More than 400 experienced loan professionals located in the Quicken Loans' state-of-the-art Web/Call Center work directly with consumers throughout the entire process, while the Web site educates and empowers consumers through timely interactive tools and information related to the home financing process. Intuit Inc. acquired Rock Financial (and RockLoans.com ) in December 1999.
