With the global financial markets in such turmoil because of the fear of the corona virus, businesses shuttering etc. both the stock market and bond market are in turmoil which in turn creates instability in mortgage rates.
There is so much confusion with everything that is happening in the world – if you are watching this you and your families are really important to me so I am wishing you good health and hope that this pandemonium is over soon.
Over the past several weeks I have received hundreds of emails from clients and friends who have questions about rates, the stock market, should they refinance, why isn’t their rate lower, should they switch from a 30 year amortization to a 15 and more, so I thought a video might be a good way to answer questions. Let me know if I don’t get to your question and maybe I can do a follow up Facebook Live where we can chat on the spot!
Can I lock at 2.75% on a 30 year fixed? *Miss Jessica, Seattle
I had a friend ask me this yesterday. The answer to that is “No”. Does that mean you will never see rates that low? Probably not in the immediate future, but they will come back.
What are rates today? *Bobby, Naples Florida & 99 others
So first of all rates are always variable depending on your loan to value, credit score, property type and debt to income ratio. Two days ago a good score, single family home, etc. could get 3.375% on a 30 year. At one point today the same qualities would net 4.625%.
With the global financial markets in such turmoil because of the fear of the corona virus, businesses shuttering etc. both the stock market and bond market are in turmoil which in turn creates instability in mortgage rates.
Shelly D, Grayslake, IL “I have a contract on a home purchase, should I move forward?”
I absolutely would move forward. Mortgage rates are an ebb and flow process. If you end up closing at a rate that you feel is too high, watch the market and refinance in 8 months to a year, I guarantee things will change!
“For now, my best suggestion is to “get prepared and get in line” for when rates come down”
Miss Alice, Lake Forest, IL asks, “Should I refinance from a 30 year fixed to a 15?”
You should refinance from a longer term to a shorter term only if the shorter term rate is low enough to keep your old payment the same, or increase it slightly to make the change worthwhile.
Adam from Kenosha asks, “I called 9 lenders and looked online and got 9 different answers about where rates are. Now rates went up. Am I SOL?” (Out of Luck)
The best advice I can give Adam and anyone else who feels that they missed out on the low rates that we were experiencing just a few weeks ago is this: Do what the Girl Scouts suggest, “Be Prepared.” Pick a lender that you trust, fill out an application, talk to your loan officer, determine a rate that you feel comfortable with and sit back and watch the rates. If you are currently at 4.75% on a 30 year fixed and 3.75% is your magic number; wait it out, have all of your documentation in to the lender and give permission to lock when rates hit your desired number.
The Q & A above are just a small sampling of the dozens of questions that I am receiving during this time. I want to answer everyone’s questions as we move forward through these difficult times. Feel free to email, text, call me or send me your questions on Instant Messenger. I am planning to do regular Facebook Live sessions so that we can discuss our strategy moving forward to give everyone awesome service. For now, my best suggestion is to “get prepared and get in line” for when rates come down. We cannot lock loans unless we have an application in the system. Rates are based on your credit score, loan to value, debt to income and appraised value. We may not move forward with an appraisal but as long as we have an application in the file, when rates drop back down we can lock. Apply Here, so you can secure access to get your application in.
Thank you for watching my video and I will keep everyone up to date and posted on changes.
