Everyone is keenly aware of the global economic chaos that has unfolded since an early warning sign was fired on February 27, 2007. The response to the worst housing environment since the Great Depression has been unprecedented: bailouts totaling $8.5 trillion through November 25, ownership stakes in over 200 banks, and loans to General Motors and Chrysler. The Federal Reserve has cut the Fed Funds rate (the rate at which banks lend to each other) to a target of 0.00% to 0.25% and promised to purchase mortgage instruments with their own balance sheet.

What does this mean for you? You have a great opportunity to save yourself a ton of money every month. Here’s how:


Simply put, as a result mortgage rates have fallen to historic lows – this isn’t Countrywide commercial historic lows, this is actual historic lows. Recent rates have been around 4.75%.

What’s the actual impact: Let’s say, for example, you purchased a $200,000 home with 20% down for a $160,000 mortgage at 6.50% for 30 years – a very, very normal scenario as recently as six to twelve months ago. The principal and interest payments on that mortgage are $1,011.31 per month. Now, you go to your lender and get a no cost refinance at current rates of 4.75%. Your new monthly payment is $834.64.

You just saved $176.67, PER MONTH!

Get on it now. Refinance immediately. If rates go lower, refinance again.