The U.S. central bank cut the federal funds rate on January 30 by half a percentage point to 3 percent, its lowest level since September 2005. That move came just eight days after the Fed slashed rates by three- quarters of a point in an emergency move to spur economic growth.
The cumulative 1.25 percentage point rate drop means refinancing is an attractive option once again. "With rates at historic lows, homeowners hoping to escape ballooning adjustable-rate mortgages or lower the rate on their fixed-rate mortgages may be able to find big savings by refinancing now," Isaacs said.
Residential Finance Corporation is a FHA Direct Endorsed Certified Lender, meaning they can approve FHA loans quickly and without third party involvement. And, since Fannie Mae and Freddie Mac are expected to increase conventional loan limits, homeowners with jumbo loans and in high-priced markets can tap into the lower rates, too.
"RFC is prepared for the rush to refi," Isaacs said. "We've emerged as a bit of a refuge for consumers seeking shelter from the mortgage storm. We're just glad to be able to provide some much-needed relief to homeowners."
