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Time To Refinance Due To Lowest Mortgage Interest Rates In 2 Years

Gustan Cho Associates
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Time To Refinance Due To Lowest Mortgage Interest Rates In 2 Years

This BLOG On Time To Refinance Due To Lowest Mortgage Interest Rates In 2 Years Was PUBLISHED On June 12th, 2019

Time To Refinance
Gustan Cho Associates

Most homeowners who closed on their mortgage loans last year in 2018 closed them at higher rates.

  • Mortgage interest rates in 2018 were the highest since the 2008 Real Estate and Banking Meltdown
  • Homeowners who have mortgage interest rates north of 5.0% should consider refinancing their home loans today
  • The Time To Refinance is now
  • Rates on 30-year fixed rate loans are now at a 24-month low
  • Mortgage rates have steadily been declining since the start of 2019
  • News by the Federal Reserve Board stating that mortgage rates will not increase has pushed rates lower
  • Jerome Powell, the FED Chairman, recently announced that the Federal Reserve Board will most likely be dropping mortgage rates this year
  • This news by Powell came as an unexpected surprise
  • Many economists and industry market experts expected rates to remain the same
  • News that the FED will be dropping interest rates came as a shock to many, including Wall Street
  • The Dow Jones Industrial Average (The DOW) has been rising daily for the past week to come close to the 26,000 mark

In this blog, we will discuss Time To Refinance Due To Lowest Mortgage Interest Rates in 2 years.

Reason For Interest Rates Drop And Why Is It Time To Refinance

Reason For Interest Rates Drop And Why Is It Time To Refinance
Gustan Cho Associates

The Federal Reserve Board increased interest rates multiple times in the past 24 months. The increase in interest rates by the FED spiked mortgage rates to the highest levels since the 2008 Great Recession. However, the FED halted plans to increase rates again this year due to international concerns. Concerns about inflation and the recent tariff threats by the Trump Administration further spiked concerns in the FED announcing they will be decreasing interest rates. If interest rates decrease, so do mortgage rates.

Alex Carlucci, a Senior Vice President of Gustan Cho Associates, is a Secondary Market Expert. Carlucci said the following on Wednesday, June 12th, 2019 conference call among the managers of Gustan Cho Associates:

This is largely due to current global concerns which may create an opportunity of opportunity for those who may benefit from a refinance.

It may make sense for you to refi if:

As of Monday, June 3, 2019, at 11:08 am, I’m quoting for a 30 year fixed conventional “rate-term” refi:

3.875% priced with 1.093 points (APR 4.021%). This is based on a $400,000 loan amount at 80% loan-to-value with mid-credit scores of 740. Principal and interest payment (does not include property taxes or homeowners insurance) is $1,880.95.

FHA And VA Streamline Refinance Mortgages

FHA And VA Streamline Refinance Mortgages
Gustan Cho Associates

Homeowners with a current FHA and VA Loans may be eligible for a fast-track streamline refinance loan program.

  • VA and FHA Loans allow Streamline Refinance Mortgages where no appraisal and no income verification is required
  • The higher the borrower’s credit scores are, the lower the mortgage interest rates are on VA and FHA Streamlines
  • FHA and VA Streamline Refinances allow a fast track no stress refinance for borrowers who qualify in benefiting by the refinance
  • Most streamlines take no more than two to three weeks
  • Anyone who has a VA and/or FHA Loan in the 5.0% range will benefit from a streamline refinance mortgage

Borrowers get to skip one to two mortgage payments. Plus there is no cost out of pocket by the borrower.

Cash-Out Refinance Mortgage Guidelines

Cash-Out Refinance Mortgage Guidelines
Gustan Cho Associates

With the combination of home appreciating and low mortgage rates, many homeowners may be eligible to do a cash-out refinance mortgage.

  • They can use the proceeds from a cash-out refinance for any purpose they like
  • Many pay off high-interest credit cards or high monthly payment auto loans
  • Others need cash to do home improvements
  • Yet others, use the proceed to finance a wedding or take a family vacation
  • FHA allows up to 85% LTV. VA allows up to 100% LTV on cash-out refinance
  • Fannie Mae and Freddie Mac allow up to 80% LTV on cash-out refinance conventional loans

For more information about this blog or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com.

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