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My wife and I refinanced our mortgage earlier this year. We had a 30-year fixed rate loan at 5.625%. We refinanced with no points to a 30-year fixed rate at 4.875%. I was convinced at the time that we would never refi our mortgage again. Boy was I wrong. In fact, just last week we locked in a rate of 3.75% fixed for 30 years with NO closing costs!

And you may be able to qualify for an even lower rate. We have what’s called a super-conforming loan. In some areas of the country, the conforming loan limits are higher than in other areas. While that keeps us away from the higher rates of a jumbo loan, super-conforming rates are still higher than conforming loans. And if you really want to pay down your loan fast, you could consider an even lower rate 15-year mortgage. We were quoted 3.25% on a 15-year refinance.

Mortgage rates dropped lower over the last few days because of the Fed’s “twist” maneuver. The Fed announced its plan to sell short-term securities and use the proceeds to purchase long-term and mortgage backed securities. This lowered the yield on the 10-year treasury note, which is used to set mortgage rates. It may seem odd to use a 10-year bond to set 30-year mortgage rates, but they do this because the average mortgage is paid off in less than 10 years as folks refinance a mortgage or move.

How long these low rates will last is anybody’s guess. But even if you recently refinanced, you may want to look at rates again. You can check out rates at Quicken Loans or see our table of current mortgage rates.

Article comments


Well, that is great news. I am looking to refinance myself and would be happy with that rate.

Richard says:

Who did you refi with? I would love to get this rate.

DR says:

Richard, I used a broker who only does business in three states. But from what I can tell, you should be able to get less than 4% from just about any broker or online mortgage offer. The Quicken Loan offer I mention in the article has rates as low as 3.875%.

Money Beagle says:

We just locked in a 3.375%, 15 year note with our current lender (Citi). I’m hoping that everything works out and I’m hoping that rates fall even a little more by the time we close as we would get the benefit of a lower rate. Either way, it’s much better than our current 30-year 5.875% note, which I was happy to get at the time!

Jim says:

“3.75% fixed for 30 years with NO closing costs!”

Were there any costs added to the principal? No closing with that good of a rate would be an extremely good deal.

DR says:

Jim, I should have been more clear. There are no points on this loan and I get a credit of about $2,000 to pay for closing costs. Total costs will be a bit over the $2,000 credit, primarily because Virginia where I live smacks you with absurd transfer taxes on a refi.

Evan says:

I have a friend who refinanced 9 months ago at 4.5% for a 15 year mortgage who just refinanced again last week at 3.75% for the same term. It seems silly to some to refinance twice in a year, but if it saves you hundred[s] a month without doing any real work why not?