The Federal Reserve has cut interest rates. Should homeowners think about refinancing or selling their home to buy a new home?
Today we’re talking about lowering mortgage rates. The economic impact of corona viruses has caused the stock market to suffer, and forced the Federal Reserve to cut interest rates by 0.5%. These factors have led to drastically falling mortgage rates that could be of great benefit to you. 3.29%, which is the lowest 30-year fixed rate in history.
You heard me the right story!
To give you an example if you would get a mortgage
For $ 300,000 at 3.29%, your payment is approximately $ 1,300.
To look at mortgage rates from a year ago that were 4.41%. With principal and interest, this payment is approximately fourteen hundred and fifty dollars. That’s a saving of around $ 150, and I can think of a lot of fun things for which I can spend $ 150 a month for purposes other than interest. During the term of the higher interest rate loan, you would pay another hundred thousand dollars from the same house.
What does that mean for you?
They probably fall into one of two categories.
If you are not in your perfect home in the next two to five years, now is the time to sell high and borrow low.
In large parts of Raleigh we are in a seller’s market with low inventory
and a seller who has the opportunity to sell his home for a maximum price.
When you add 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 can use the loan for your next home at a much cheaper price. This allows you to qualify for more home with less payment and save money over the life of the loan. To me, that sounds like a perfect plan that I don’t know about.
If you are happy in your home and are planning a stay, consider refinancing.
You want to make sure you are prepared and get all the numbers in advance. Refinancing takes between 20 and 45 days on average, and you’ll need to provide some documents, such as tax returns, pay slips, and such items. And there are costs between one and three percent. Just like buying a home, transaction costs are incurred. You will also refinance them. All of these things are therefore a rare time for you considering refinancing to shorten your mortgage term or possibly lower your mortgage payment.
We are here to answer your questions if you are thinking about selling and wondering where to go. We have off-market properties and new offers online. We would like to share it with you. And if you are thinking about refinancing, call us for the first time.
We can answer many of your questions and I promise to take you to a trustworthy lender that will save you time and money and make it a great experience. Call me at 919-526-0401.
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