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Weighing the Options: Mortgage Refinance

Want to know more about refinancing? Call 678-467-2330

Ever heard the old rule of thumb that says you should only consider refinancing if the new interest rate will be at least one point below your present one? That may have been valid years ago, but with refinancing dropping in cost over the last few years, it's a good time to think about a new mortgage loan! A refinance can be worth its cost many times over, factoring in the advantages that may come, as well as a reduced interest rate.

Advantages

You may be able to bring down your interest rate (sometimes substantially) and reduce your mortgage payment amount with a new mortgage. You may also have the option to "cash out" some of your equity, which you can use to take care of higher interest debts, make home improvements, or take a vacation. You might be able to refinance to a shorter-term mortgage, giving you the ability to build up your equity faster.

Expenses and Fees

All these benefits do cost something, though. When you refinance, you are paying for many of the same things you paid for during your current mortgage loan. Included in the list will typically be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.

Do the Math - or call and have me do it.

You might look into paying discount points to receive a lower interest rate. The money you'll save over the life of the mortgage might be substantial  and any paid points can be deducted on your taxes.  Please talk to a tax professional before acting.

Speaking of taxes, if your interest rate is reduced you will also be lowering the paid interest amount that you can deduct from your federal income taxes.. Call us at 678-467-2330 to help you do the math.

In the end, for most borrowers the total of up-front costs to refinance are quickly recouped in monthly savings. ll work with you to find out which mortgage program is perfect for you, looking at your cash on hand, the likelihood of selling your home in the next few years, and how refinancing will impact your taxes.

Posted by Elizabeth Washburn on August 11th, 2020 5:49 PM

Good afternoon,

 

A few weeks ago, the industry saw a rate drop due to a volatile 10 Yr US Treasury. Today, the industry is giving out higher  rates while things are constantly changing and evolving in these unprecedented times. Here are perhaps the main risks influencing rates today, not specific to any lender but the mortgage industry as a whole:

  1. The market has been extremely volatile lately, and the recent pattern of the market tanking-rallying-tanking-rallying is resulting in expensive and dangerous margin calls often costing an entire point or more. This is a VERY risky time for lenders to take new locks under these market conditions, which is a big reason you are seeing rates industry-wide that seem to say, “We aren’t locking right now”. To survive this storm, mortgage lenders have to make very smart decisions, including not taking huge indeterminable risks that could be detrimental to the longevity of the company.

  2. Mortgage Backed Securities are viewed as riskier today in these anything-but-typical market conditions we are currently seeing because:

    1. There is a concern that a disproportionately large number of the mortgages closing now will be paid off via refinances within 12 months (AKA “EPO, Early PayOff”) if rates drop again when the market stabilizes, resulting in an enormous cost to the original lenders. 

    2. There will certainly be a huge influx of missed mortgage payments in the coming months due to factors such as Fannie Mae and Freddie Mac temporarily suspending foreclosures and evictions, new forbearance options allowing borrowers to delay some mortgage payments, and borrowers losing their jobs or experiencing a pay cut affecting their ability to pay their mortgage payments. Some estimate that 25% of borrowers may not make their mortgage payments in the coming months. 

NOTE: Under current policy, mortgage servicers are STILL responsible for paying the principal, interest, taxes, and insurance to the bondholders, even when the borrower does not make the mortgage payments to the servicer. This is expected to cost the mortgage servicers up to an estimated $40 BILLION dollars over the next 3-4 months across the industry without Federal help.

Posted by Elizabeth Washburn on March 25th, 2020 5:52 PM

BLUES AND GREENS

REFINANCE BLUES- adj- The feeling you have when you know you need to refinance, but you are dreading the cost and the process involved.

REFINANCE GREENS - adj - The color of your wallet and your friend's faces when they know you are done with your home refinance.


This year will be one to remember!  Rates hit in the 3's again, and lenders have come a long way in driving down closing costs too! It is very exciting!! 

We may be able to WAIVE the appraisal.  Ask me to check your GA property for eligibility. That's nearly $500 in savings!  "YES WE CAN!"

We have access to Simple Refinance Closings.  Ask me to use my closer if you are open to the option of where you close for $500-700 in savings.  "YES WE CAN!"

If you don't want to wait 5-7 days for someone to underwrite your file, so you need an extremely long lock and months to get this done, let me know.  "YES WE CAN!"

Does this Blog look obnoxious?  YES IT DOES!  But so is refinancing so lets just get it done!!

Call me/ Text me / Email me if your ready to do a quick crunch of the numbers and get the savings started!  678-467-2330 

(If you already know what you generally want, go ahead and text "showmethemoney" to 36260 :)  

The more you follow the automated application process, the more the savings are passed on to YOU! Apply from your phone!

(Georgia only)


and tagged: refinance
Posted by Elizabeth Washburn on August 23rd, 2019 2:42 AM

Since the election, the average mortgage rates have increased. The nine-week rise came to a sudden end today with rates decreasing during the first week of 2017. The average mortgage rate for the 30-year note dropped by 12 basis points to 4.20 percent. Rates for the 15-year notes decreased from 3.55 to 3.44 percent. It is still higher than prior to the election, but a new trend always starts with a first day.

This drop is good news for last minute refinancers or purchasers seeking a mortgage. If restructuring your mortgage is rate sensitive, it is likely time to take action since most experts expect rates to continually climb throughout the year, despite the recent drop.

Compared with rates in previous decades, current rates are low for mortgage borrowers. This is set to change, though, with rates having the potential for a rise to 5%+ during the coming year. It means that homebuyers, especially first-time buyers, should attempt to purchase sooner rather than later, or face decreased home price qualifications in the future.

If you're interested in refinancing or making the dream of homeownership a reality, visit www.NewThresholdMortgage.com for more information and achieve your next step.

Posted by Elizabeth Washburn on January 10th, 2017 5:40 PM

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