September Market Update
Ready to buy or refi? Everyone else is. After five crazy weeks of mortgage rates dropping continuously, interest rates have finally bottomed out this week. The bright side? Rates did not rise, either. Hovering at around 3.8% for an average person’s 30-year fixed loans, mortgage rates are the absolute lowest they’ve been since September of last year, and are continuing to make home buyers and those in need of refinance very happy.
However, there is speculation that mortgage rates are going to begin to climb again at some point in the very near future, some are even suggesting this reversal will begin as soon as next week. Thankfully, rates are still at their record lows, so mortgage rate shoppers for refinance and purchase still have a small window of time to lock in these rates.
We’ve all heard the news coming out of the Federal Reserve (Fed): Interest rates are rising. So it may surprise you to learn that mortgage rates are actually falling. What gives? It’s important to know that Fed rates and mortgage rates do not directly affect one another like, say, the Fed affects savings account rates.
So with these current mortgage rates, the question is: has the time come for you to buy or refi?
Making the decision to buy is by no means an easy one. It’s about balancing emotional desires with rational ones, typically creating a difficult situation for most people. But if you’ve been on the fence for a while now, it’d be wise to consult a mortgage broker soon.
However, with a refinance the reasons are much more practical, if not downright easy to make.
The first and most common reason to refi would be to lower your mortgage interest rate. Contrary to what many homeowners may think, lowering your mortgage rate by even just ¼ of a percent can significantly decrease your monthly payment, and save you literally tens of thousands of hard-earned dollars over the course of your loan!
If you’ve never refinanced, or haven’t done so in a few years, it’s more than worth your time to consult a local mortgage professional to see if you can benefit from these currently low rates.
Are you still paying private mortgage insurance (PMI)? This is insurance that is required if your down payment (equity) on your mortgage is less than 20%. Shockingly, many people still pay PMI despite the fact that they now own 20% or more of their home. This is akin to lighting a few hundred dollars on fire every month, there’s absolutely no reason for it. With a refinance, you can get rid of that costly PMI, on top of saving money with a lower interest rate.
Are you paying high interest on credit card debt, or looking to take out loans for a car or home improvement project? If so, it can be a great idea to unlock some equity in your home with a cash out refinance instead.
The idea here is pretty simple: Would you rather pay a low, budget-friendly mortgage rate on borrowed money, or pay the crippling high double-digit interest rates of credit cards or other loans? The answer seems clear, but it’s worth stressing that working with a mortgage broker that you can trust is paramount here. Unlocking equity in your home isn’t always a good idea.
As with any type of refinance, it’s highly important to work with a community driven, trustworthy mortgage expert, and one that’s also a qualified financial professional. You need high quality and accredited advice in order to have 100% confidence in these big decisions you’re making for you and your family.
Fortunately, San Dimas has access to our local mortgage brokerage, Better Home Financial, and to our President, Mike Wallace CPA. Better Home Financial has a strong, 30-year track record of community driven service, in addition to Mike currently being:
1.) President of San Dimas Rotary,
2.) Treasurer of San Dimas Chamber of Commerce,
3.) and Board Member of the San Dimas Sheriff’s Boosters Club.
As a fully Certified Public Accountant, Mike’s financial knowledge and work experience extends far beyond your average mortgage broker, giving our clients unparalleled service and confidence. To top it off, we also specialize in 0 cost, 0 fee refinances and loans, so you don’t have to pay anything out of pocket!
For 30 accomplished years, Better Home Financial has existed to help our community grow, and a big part of that is helping people live better financial lives. We look forward to the next 30 years community service, and to helping you make the best of your finances!