With the federally regulated prime rate steady at 3.25, this week saw a 23.1 percent spike in refinancing index. These mortgage indices are used to measure spikes in consumer refinancing, which is a strong indication of lower mortgage rates at banks across the country.
In recent months, consumers have been able to take advantage of huge, long-term savings by refinancing their mortgages, which they expect will save them thousands over their lifetimes.
This, too, is the hope of many banks, which are eager to cut costs and reduce risk by offloading bad debt and circumventing foreclosures by offering generous refinancing options.
Seriously, don’t ignore the cold callers
If would be interesting to see what the correlation is between new cold calling and refinancing. Many consumers have complained, only to soon be delighted, at the small army of informative cold callers that has been calling day and night to help people refinance a mortgage. It’s not just mortgages either. The federally regulated prime rate is the best harbinger of coming refinancing options by banks. Any slight shift can mean huge savings on whatever basket of loans you currently hold.
Economic fair weather ahead
Refinancing is largely a tool used by banks to bring in new business, and, as previously noted, offload and offset bad business. A marked increase in the availability of refinancing options by banks is usually indicative of strong bank performance and consumer need. This seemingly unusual combination can help both consumers and banks balance their ledgers. Don’t miss out on these auspicious refinancing options.