Are you familiar with a Qualified Mortgage (QM) and the new rules surrounding QMs beginning in early 2014? If not, you’re in the right place. Quicken Loans team members Shawn Krause, Executive Vice President of Government Relations and Amy Bishop, Deputy Corporate Counsel took the time to explain the new rules. If you’re interested in finding out about QM and how the new rules may impact you, take a look at the discussion I had with Shawn and Amy.
If you recall properly, Bernanke and the Fed have stated on numerous occasions (see here, here, here, and here) that they plan on keeping interest rates as close to 0% as possible to help speed up the US economy’s growth.
Although the Federal Reserve’s interest rate doesn’t have a direct impact on mortgage rates, it does impact the stock market and bond markets, which have direct impacts on mortgage rates.
According to MSNBC, Bernanke refinanced his Washington home in 2011, taking a 30-year fixed-rate mortgage valued between $500,000 and $1 million with an interest rate of 4.25%.
That’s a significantly lower rate than his initial mortgage taken out back in 2009, which clocked in at a whopping 5.375%. Actually, it’s kind of funny that 5.375% is a “whopping” rate. We’ve been spoiled by these low rates, my friends. I dread the day when they end.
Anyway, 4.25% isn’t bad, Ben, but I’ll do you one better: according to Freddie Mac’s Weekly Primary Mortgage Market Survey, the highest national mortgage rate average this year was set way back on March 22, when the average for a 30-year fixed-rate mortgage averaged 4.08%.
Maybe he should think about refinancing again to take advantage of rates even lower than last year’s!
Take a look at MSNBC’s article to get the full scoop on Bernanke’s refinance.