Interest rates at zero, best time to refinance loans

Posted at 6:23 PM, Mar 25, 2020
and last updated 2020-03-25 18:23:40-04

With millions of American losing their jobs or seeking their work hours curtailed, we could all use a few extra dollars.

The federal government are slashing interest rates and it could help if thinking about refinancing some high interest loans.

One of the few upsides of economic turmoil are plunging interest rates.

Mortgage rates were dropping like a rock until a week ago or so, but now they have inched back up and many homeowners are asking why.

Rates on home loans, car loans, student loans, and credit cards are all dropping as a result of the fed's March 16 slashing of rates.

Tome and Alex Moonitz are a young couple getting ready for a new baby in their lives. When their mortgage broker called them about a possible refinancing, the couple perked up.

"Getting ready to have a baby in a few weeks, so being able to save any kind of money would be awesome for us and for our family."

The couple lender, Breon Price, had some amazing news for them.

"We are seeing now sub 3 rates on 30 year fixes," Price says.

According to Price, that would lower their payment $100.

Those three percent rates are now ticking up again because lenders are tightening their belts in this crisis. There may be a tricky time finding a three percent rate now.

If you are paying a high interest rate on your car loan, you should ask about refinancing.

Forbes Magazine says this is also a good time to refinance student loans and and credit card rates should drop in the next month.

If you're thinking about refinancing, you should connect with your mortgage broker who will shop around to a dozen banks or more.