Record-low mortgage rates could turn a 30-year loan into a 20-year

History was made this week in the mortgage market, giving homeowners and prospective homebuyers the chance of a lifetime. 

U.S. mortgage rates slid to record lows, as the yield on the 10-year note fell below 1 percent for the first time ever after the Federal Reserve instituted an emergency rate cut to combat the coronavirus.  

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A 30-year fixed-rate loan is now at 3.29 percent, per Freddie Mac, while other loan options are lower. 

"There is not a single one of your readers that have seen that in a lifetime," Bill Banfield, chief risk officer at Quicken Loans, said during an interview with FOX Business. 

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Quicken Loans, coming off a record week of business, is seeing more customers refinance existing mortgages in exchange for a shorter duration but not necessarily a lower payment. 

Many people "are looking to shorten their term, whether it's a 25-year, 27-year or a 20-year," he noted. "Some folks don't want to step backwards, they want to keep moving forward in paying off their debt."

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For those seeking a lower payment, the annual savings from refinancing could be significant. 

"If you had a $250,000 mortgage and your rate goes down 0.75 percent, you can save about $1,300 a year," Banfield estimates.  

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Looking ahead, as the coronavirus remains a global health crisis and financial markets continue to get whipsawed, the CME's Fed Watch Tool shows traders are betting that policymakers will cut rates even further at meetings later this month or in April. 

"You will see mortgage rates continue to go down, you will see mortgage rates with a 2 in front of them," MBS Highway CEO Barry Habib predicted during an interview on FOX Business' "The Claman Countdown."

"You will save a ton of money," he added while advising consumers to get their applications going but wait to lock in a rate. 

CORONAVIRUS DRAGGING TREASURY YIELDS TO RECORD LOW HELPS HOMEBUYERS