That was an old saying we had on the trading floors when there was NO action. And after the NFP number Tuesday and the consequent drop in rates that’s basically what we got in Mortgageland-calm the last two sessions. After all the hullabaloo of government shutdowns, debt ceiling, and delayed jobs data Mortgageland got what we wanted and needed, lower rates and a little light in the re-finance window. Since there are a couple weeks before the next NFP number and a “calm before the calm” there will be little impetus to move rates in a big way. I’m optimistic that for that time and eight weeks beyond, that lenders remain sanguine.
TIME TO GET YOUR FISCAL HOUSE IN ORDER-REFINANCE NOW!
Unlike the clowns in Washington who can’t get our fiscal house in order let’s talk about you getting it together.
Be situated and primed to lock when you think the time is right!
If you have a mortgage on your primary residence at a rate of 4.5% or higher you should definitely be preparing your application!
Here are four reasons you may want to refinance:
Change your RATE: Did you close your loan this summer? Odds are you have a higher interest rate than what is currently available. What’s your rate? You can see mine at the end of this article.
Change your TYPE: How long do you plan to stay in your current home? How long are you going to hold that investment property? Have you changed the time horizon that you plan to hold onto these properties? It may make more fiscal sense to move from a fixed rate to an adjustable rate (ARM) or vice versa.
Change your TERM: Can you qualify for and comfortably afford a higher payment? Moving your mortgage to a shorter term (like moving from a 30 year to a 15 year fixed) will get you a lower rate and save you thousands of dollars in interest expense.
Get rid of MORTGAGE INSURANCE: Analyze your mortgage. Can you get rid of mortgage insurance by refinancing into a new loan? There are Conventional programs with as little as 5% equity that allow you to, eventually, get rid of mortgage insurance.
I feel so strongly about refinancing in the next few weeks that I have been campaigning this Halloween season via email marketing (heaven help you if you’re on my distribution list, just kidding) you can see my promotions at my Tumblr blog here.
DON’T GET TRICKED!
When lenders reverse course on rates it can be quite severe. I’ve said it before and I’ll say it again:
Rates move UP in tablespoons and DOWN in teaspoons!
Don’t get “pantsed” like borrowers did in the spring.
We are in a downtrend in rates, but it’s probably not going to last long!
Again, if you have a mortgage on your primary residence at a rate of 4.5% or higher you should definitely be preparing your application!
Change isn’t so scary. I provide FREE consultations!
Here is my rate sheet today, rates subject to change, Rates change daily.
based on $250K single family purchase price with 20% down and 740 credit score
5YR ARM…….2.875% (3.03% apr)
7YR ARM…….3.25% (3.185% apr)
10YR ARM…..3.75% (3..525% apr)
30YR FIXED…4.00% (4.072% apr)
15YR FIXED…3.125% (3.212% apr)
I understand that it may be a hassle to get the documents together and get the “deed” done, but get it done! Low Rates Don’t Suck!
Rates are good, SCARY good!
Look to this column next week for more information on the HARP program and “rent vs. own”
I hope you have a “killer” weekend!
If you would like to contact Gil about questions about mortgages, you can call him at 312-961-4510 or email him at firstname.lastname@example.org for a FREE consultation. To find out more about him and the people he works with, please go to www.gilvalentine.com Gil is a licensed Loan Officer, NMLS#1019717
“Midwest Lending Corporation 1732 West Hubbard #2A Chicago IL 60622. Illinois Mortgage Licensee#MB6759631 NMLS#204212 Equal Housing Lender”