Record Low Rates Stretch Buying Power/Great Time To Refi!

Yes, it is happening again!  For those that missed the low rate bus last time, big yellow has officially pulled back up to the stop and is loading passengers!  Interest rates have fallen significantly this week to a point where we are right back at historical lows.  Check out the visual below.  Remember that up on this bond price chart means down for fixed mortgage rates.  The last 6 days are all green on the chart which is great for mortgage rates.

 INCREASED PURCHASING POWER

  1. A Conventional buyer could now buy a $383,000 home for the same payment a $350,000 home cost a week ago
  2. A Conventional buyer could now buy a $273,000 home for the same payment a $250,000 house cost a week ago
  3. An FHA buyer could now buy a $328,000 home for the same payment a $300,000 house cost a week ago
  4. An FHA buyer could now buy a $218,000 home for the same payment a $200,000 house cost a week ago

*all examples are using a 30 year fixed mortgage
There are other examples such as VA and USDA that would be similar in savings
Jumbo pricing is not impacted in the exact same way as traditional pricing however Jumbo pricing should improve as well depending on product

REFI – WHAT TO DO?
If you, your clients, your friends or family are at or above 4.75% on a 30 year fixed or 4% on a 15 year fixed it would pay to look into refinancing.  Some 30 year fixed scenario’s were as low as 4.125% today.

Please pass this info on to your database as timing is critical.  I believe that low rates may be here at least through the end of the calendar year.  However, it is important to catch these extreme dips in the market and lock in to take advantage.  If you are sending this out and would like people to contact me to look into their options for them please feel free to forward the attached document to help them know who you are referring them to!

 As always, please let me know if you have any questions. Thank you!

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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