Mortgage Rates Remain Around 30-Year Lows; Quicken Loans Enables Consumers to Take Advantage of Lower Rates to Buy a Piece of the American Dream, Refinance Costly Payments

Business Wire, March 20, 2001

Business Editors/Banking & Real Estate Writers

LIVONIA, Mich.--(BUSINESS WIRE)--March 20, 2001

Since the Federal Open Market Committee (FOMC) first lowered interest rates in early January, and again today by a 0.5 point, mortgage rates continue to hover around near thirty-year lows.

These lower rates have sent potential first-time buyers - and existing homeowners looking to refinance - running to Quicken Loans, Intuit's (NASDAQ: INTU) mortgage lending unit.

"I would say that between 40 and 60 percent of homeowners today are probably at a place where they should at least take a look at whether refinancing would benefit their situation," said Daniel Gilbert, CEO of Quicken Loans.

"Lower rates and easier access to lending resources through the Internet have resulted in a refinance boom across the mortgage industry. Most consumers are applying for conventional, fixed-rate loans, with about 20 - 30 percent taking cash out for debt consolidation. Consumers' average monthly savings are between $150 - 300 a month, with some customers looking at savings of as much as $800 a month. The Quicken Loans Refinance Calculator at www.quickenloans.com can help consumers who are wondering if refinancing is right for them."

Quicken Loans Refinance Calculator

So who should consider refinancing? Anyone who's obtained a fixed rate mortgage in the last two years or anyone with an adjustable rate mortgage could benefit from refinancing. Even consumers who've obtained a mortgage as recently as the last four months could look into refinancing as rates have since dropped. It could save them hundreds of dollars each month.

For example, a consumer with a $250,000 mortgage at an 8 percent interest rate who refinanced the mortgage at a 7 percent rate, would save more than $171 a month, or $2,000, from their yearly mortgage payments. Consumers wishing to determine their potential savings can enter their mortgage information into the Refinance Calculator at the QuickenLoans.com Refinance Center.

Gilbert also suggests that anyone with an adjustable rate mortgage examine current rates to determine if they may be able to lock in a fixed rate mortgage at rates equal to or lower than their current adjustable rate mortgage.

"This also may be a good time, if applicable, for consumers to consolidate their higher interest credit card debt at much lower interest rates through a home equity loan," said Gilbert. "A number of the applications we are receiving are from customers wishing to consolidate two loans together and get extra cash for debt consolidation."

For example, a consumer with a $150,000 home loan at 8.5 percent, and another $25,000 in credit card debt at 17 percent, would have minimum monthly payments of $1509 ($1153 to the mortgage company and $356 to the credit card accounts).

Consolidating all the debt into a $175,000 mortgage at 7 percent would drop their total payments to just $1164 a month, saving them $345 a month. And, in most cases, the interest paid will be tax deductible. The Debt Consolidation calculator at the Quicken Loans Home Equity Center can assist consumers in evaluating their potential savings.

Consumers wishing learn more about home financing, or who would like to calculate their potential savings, should visit the Quicken Loans Refinance Center at www.QuickenLoans.com, or call the toll-free number 1-888-565-2488.

About Quicken Loans

Quicken Loans Inc., a leading provider of direct-to-consumer home loans on the Internet, offers mortgages in all 50 states and the District of Columbia. The company provides a wide variety of home financing options including conventional, sub-prime, home equity, government, and jumbo loans.

Quicken Loans combines cutting-edge technology and high touch personal service to give consumers a convenient one-stop mortgage lending experience on the Internet. More than 700 experienced mortgage professionals at the Quicken Loans' state-of-the-art Web/Call Center work directly with consumers throughout the entire process to help consumers close their loans quickly. The Web site also educates and empowers consumers through timely interactive tools and information related to the home financing process. Quicken Loans is a wholly-owned subsidiary of Intuit Inc.

About Intuit

Intuit Inc. (NASDAQ: INTU) is the leader in e-finance, including financial software and Web-based services. Intuit develops and markets Quicken(R), the leading personal finance software; Quicken TurboTax(R), the best-selling tax preparation software; and QuickBooks(R), the most popular small business accounting software.

Intuit's Quicken.com (R) Web site (www.quicken.com) is a leading financial Web site, offering a comprehensive set of financial news, information and tools, including insurance, mortgage, investment and tax preparation services. Intuit's products and services enable individuals, small businesses and financial professionals to better manage their financial lives and businesses.