Since the end of May, interest rates have continued to improve. While this is not happening in a straight line, the trend has been in a positive direction for mortgage rates. Especially over the last three weeks we have seen some dramatic swings from day-to-day. Depending on your personal situation, interest rates for the most part have dropped into the mid to high 3% range, if you are a solid borrower.
The rate you get quoted considers many different factors. For example, your credit score, how much of a down payment you are making, what type of loan you are doing, the size of the loan, just to name a few. If you are refinancing, how much equity you have in your home and whether you are taking cash out, also come into play. While the economy is still very solid, there continues to be talk of an impending recession. This is being driven by the fact that the much of the rest of the world is not performing nearly as well as the US. That coupled with the ongoing saga about trade wars with other countries such as China, have investors betting that all these factors will ultimately impact the US economy in a negative way.
If you are looking to purchase a new home, this dip in interest rates provides you with an excellent opportunity to purchase your first home or move up to a larger property, with much lower payments then at any time in the last several years. If you are wondering whether it makes sense to refinance, feel free to give us a call. We have already reached out to many of you and have run reports identifying people that may be candidates.
For some context, if your rate is over 4.5%, it very well should make sense to consider refinancing. If you are between 4.25% & 4.5%, then we are getting closer and we will be reaching out to you to let you know that we have you on our radar. If you are considering taking cash out for debt consolidation, then you should call us no matter what your rate is because the we have a wonderful tool to show you how this may improve your cash flow situation. Keep in mind that rates fluctuate day to day. Lately, with all the volatility in the markets, it is not uncommon for lenders to do intraday price changes. Rates typically come out late morning every day but if the markets are fluctuating dramatically, they will suspend pricing and reissue rates during the day.
Several of our clients have taken our advice and got started with the process, which gives us the opportunity to take advantage of locking your rate if we have a sudden downdraft. Give us a call today to see if it makes sense for you!
Happy House Hunting!!!!