The Federal Reserve has lowered interest rates. Should homeowners think about refinancing or selling their home buying a new home?
Today we’re talking about mortgage rates being lowered. The Coronaviruses’ impact on the economy has led to the stock market getting absolutely hammered and it’s forced the Federal Reserve to cut interest rates by 0.5%. These factors have led to mortgage rates that are decreasing drastically and could be a huge benefit to you. 3.29% that represents the lowest 30-year fixed mortgage rate in history.
You heard me right history!
To give you an example, if you were going to get a mortgage
for $300,000 at 3.29% your payment’s about $1,300.
To look at mortgage rates from a year ago, which were 4.41%. With principal and interest that payment is about fourteen hundred and fifty dollars. That’s a savings of around a $150.00 and I can think of a lot of fun things to spend a hundred and fifty dollars a month on other than interest. Over the life of the loan at the higher rate, you would pay another hundred thousand dollars from the same home.
So what does this mean for you?
You probably fall into one of two categories.
If you’re not in your perfect home for the next two to five years now is the right time to sell high and borrow low.
In much of Raleigh, we’re in a seller’s market with low inventory
and a seller having the ability to sell their home for a maximum price.
When you add in low-interest rates, you have a perfect equation for selling and maximizing your return.
Basically, as a seller, you have an unprecedented advantage.
Then you’re able to take advantage of borrowing for your next home at a much lower rate. This allows you to qualify for more home at less payment and it saves you money over the life of the loan. That sounds like a perfect plan to me I don’t know about you.
If you’re happy in your home and you’re planning on staying you may want to consider refinancing.
You’ll want to make sure that you’re prepared and that you get all the numbers upfront. It takes on average between 20 and 45 days to refinance and you’re going to have to produce some documents like some tax returns, pay stubs, verification items like that. And there are costs anywhere from one to three percent. Just like when you buy a home you’re going to have closing costs. You’re going to get those on a refinance as well. So all of those things considered it’s a rare time for you who are thinking about refinancing to shorten the length of your mortgage or and or possibly lower the payment of your mortgage.
We are here to answer any of your questions if you’re thinking about selling and you’re wondering where you might go we’ve got you covered. We’ve got off-market properties and new listings coming online. We would love to share them with you. And if you’re thinking about refinancing make us your first call.
We can answer a lot of your questions, and I promise to get you over to a trusted lender who will save you time, money and make it a great experience. Give me a call at 919-526-0401.