Mortgage Rates As Low As They've Been In A Year

[pianoman9701]

If you've been waiting to refinance or buy the house you've been thinking about to get you out of that rental or get an upgrade, now would be a good time to call me for some numbers. It takes minutes for me to be able to give you rough numbers. Call me!
(360) 771-1914
NMLS #2014743
Amerifund Home Loans
Company NMLS #347051

Amerifund is an equal opportunity lender.

[Sitka_Blacktail]

The Fed is calling for two more rate cuts this year. Wouldn't it be smarter to wait for those before locking in?

[vandeman17]

what is low? Also, I have also read that Fed Rate cuts don't always equate to mortgage rate drops. 

[Gentrys]

Pre-approvals are often good for up to 90 days.  Get pre-approved now with John, so when you find the right property you're able to move on it. 

[Rat44]

Just a little change in percentage rates can add up pretty quick over the life of a loan.
I laugh at all the refi calls and mail I get trying to get me to refi.
Bought my house 3 years ago at the height of the housing shortage.
Worst time to buy because every thing was Way over priced but we didn't have a choice because the landlord sold the property.
Paid too much for the house but we got a VA loan for 2.6% .
Probably never see it that low again.

[Bareback]

Just a thought. If rates drop more you can still refi after a few months, which might equate to mucho dinero in savings before prices start to rise. Check with John to verify.

[pianoman9701]

The Fed is calling for two more rate cuts this year. Wouldn't it be smarter to wait for those before locking in?

Good question. Our last rate cut was a year ago this month. Rates have climbed steadily since until very recently. The Fed Rate has little effect on the mortgage rates because there are other factors involved. After the Fed cut rates this week, mortgage rates went up, although very slightly. What affects mortgage rates the most is the 10 year US Treasury. When it goes up, so do mortgage rates. When it goes down, so do mortgage rates.

One of the risks you make in waiting is losing the savings you'd get with a purchase today. For example, let's say housing in your area ($500K avg price) appreciates with the national average of about 4% annually (WA has been averaging higher). And let's say that a year ago an elite mortgage note rate was 7.25% (7.625 APR). And let's say you waited to purchase until today, with an elite note rate would be 6.25% (APR of 6.625). The difference in payment is about $332/mo., from $3,410.00 to $3,078, an annual savings in interest of $3,984.00. Pretty good, right? Nope! Because you lost $20,000 in equity, making it a net loss of $16,016.00. With the rate change, it would take you four years to make up the loss.

Now let's talk refi with the same numbers. Your current rate from last year's purchase is 7.25 (7.625 APR) and the every month you wait, you lose a savings of $332/mo because you're waiting for the note rate to go under 6%. Let's say it takes 6 months to go under 6% and you refi at 5.99%. The difference between a note rate of 6.25 and 5.99 is $84/mo. Great right? Nope. because you lost $332/mo for 6 months = $1,992.00 loss. It'll take two years for you to just break even on the difference in rate.

But what's the biggest problem? You nor I have crystal balls. We don't know where the rate is going. If it goes up, you lose. If it goes down, you can refi again if the saving warrants it.

[pianoman9701]

Just a little change in percentage rates can add up pretty quick over the life of a loan.
I laugh at all the refi calls and mail I get trying to get me to refi.
Bought my house 3 years ago at the height of the housing shortage.
Worst time to buy because every thing was Way over priced but we didn't have a choice because the landlord sold the property.
Paid too much for the house but we got a VA loan for 2.6% .
Probably never see it that low again.

Yep, probably not. Mine, too at 3%

[pianoman9701]

what is low? Also, I have also read that Fed Rate cuts don't always equate to mortgage rate drops.

Good reader! See my lengthy reply above. The 10Year UST is the indicator to watch.

[pianoman9701]

Pre-approvals are often good for up to 90 days.  Get pre-approved now with John, so when you find the right property you're able to move on it.

And credit checks for up to 120. Thanks Gentry! 

[pianoman9701]

Just a thought. If rates drop more you can still refi after a few months, which might equate to mucho dinero in savings before prices start to rise. Check with John to verify.

I will run the numbers for anyone. Thanks my friend! 

[HntnFsh]

My grandson has been house shopping. He's 19. Has a down pmt. Saved and steady hard worker through IBEW. May be tough for him but I'll give him your contact info.

[pianoman9701]

My grandson has been house shopping. He's 19. Has a down pmt. Saved and steady hard worker through IBEW. May be tough for him but I'll give him your contact info.

That would be great. I'll take good care of him for sure. Thank you! 
(360) 771-1914
john.wallace@amerifund.com