One of the hottest topics in the real estate market is refinancing. If you’re not familiar, refinancing is when you get a new mortgage to replace your existing one, allowing you to gain a better interest term and rate. With interest rates always changing, many homeowners like yourself are trying to refinance their property while rates are on the downslope. Here’s what to know if you are in a position to refinance your mortgage.
1. Rates Fluctuate FAST
Due to our unique economic climate and unprecedented demand, interest rates are rising and falling with the speed of the stock market. And like the stock market, the key is to begin the refinancing process before rates start going up again. Why is this important?
2. Refinancing Takes Time
With so many people looking to refinance, some brokerage firms are getting overwhelmed with requests. Applications that would normally take a matter of days may take over a month to process. That being said, things may be speeding up thanks to new regulations.
3. Guidelines and Offerings Are Tight
To temper the rush of applications flooding their offices, some lenders are reducing their options while increasing the criteria you must meet (credit score requirements, employment status, post-closing liquidity, etc.) to qualify for one. For example, if you’re trying to refinance an investment property or a second home, you may have a harder time.
4. There’s No Need to Panic
If you missed out on a great rate, relax. Mortgages are likely to continue fluctuating throughout the rest of the year. The best thing you can do now is to prepare yourself for the next rate drop. That means keeping a tab on rates and lenders.
5. Know What You’re Looking For
Refinancing is like grocery shopping: If you don’t know what you’re looking for before you start, it may take you a lot longer. Define the rate and loan type you need to make refinancing worth your while, and be ready to move as soon as it comes around. And, the rate may even drop below that threshold by the time you’re all said and done.
6. Don’t Forget Keller Mortgage
As a Keller Williams agent, I can refer you to exclusive refinancing options, courtesy of Keller Mortgage. I’d be happy to help you if you’re interested. Just reply to this email or shoot me a call or text.
Stay safe, and keep an eye on interest rates!