Is Now the Time for a New York Refinance Mortgage? You Betcha!

By
Mortgage and Lending with Quicken Loans

I always wonder why? Why? Why, what, you ask?

Well, I think it's summed up in "why don't people do the things you think they should?"

Since I'm a mortgage professional and I love helping people save money on their mortgage payments, my big question is why don't more folks in New York refinance their mortgage and lower their payment?

I completely understand some people can't. They don't have the equity to refinance or they aren't sure if they can cover closing costs. To those folks I say, keep positive and eventually things will turn around. I also say, are you really SURE you can't refinance? Have you checked into all New York refinance mortgage options? Such as the FHA Streamline program, which may allow FHA loan holders to refinance to today's historically low rates without an appraisal? Or the Making Home Affordable program, which allows refinancing up to 125% equity?

But the people I'm really talking to are the ones with equity, those are simply aren't taking advantage of the lowest rates since 1955. This is not going to last forever. Soon rates will jump back up and they'll probably stay there.

Don't take my word for it.

New York Refinance Mortgage in the News

Yesterday there was a pretty good article in Reuters that I wanted to share. Here's a little from the article, Home refinancing demand up, rates hit new lows:

Mortgage applications rose last week as record low rates lifted demand for home refinancing loans to its highest level in over 15 months, a development that could provide a much-needed jolt to the economy.

Home loan refinancing puts extra cash into consumers' hands that they can save, use to pay off existing debt or funnel into the economy through extra spending.

With worries of deflation and a double-dip recession rising, an uptick in consumer spending could be just what the flailing economy needs.

Lessons from Jay Farner

I'll leave everyone with a thought.

 If you can't take advantage of mortgage rates at levels we haven't seen since McDonald's was a hamburger stand, I understand. But if you aren't taking advantage because you don't THINK you can or you don't care, then I hope you change your mind. One of my mentors, Quicken Loans President and CMO Jay Farner, always told us to take advantage of every opportunity. Never let a chance to improve ourselves slip by.

Those are words to live by.

I hope you agree.

Comments (3)

Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

I would guess that this would be a great time to refinance... just as long as it can be done with NO costs for the buyer.  I have seen too many times when owners have refinanced, and ended up "rolling in" their closing costs, and having a much higher balance than before.  No cost refinances are available now, and that's the only way I would recommend it.

Aug 30, 2010 09:19 AM
Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

By the way, I see you are pretty new to Active Rain... so... Welcome to Active Rain.  This is a great place to learn, to share, to meet some great people, and eventually, if you keep it up and persist... it's a great place to grow your business.

Aug 30, 2010 09:21 AM
Jeffrey Trenta
Quicken Loans - Detroit, MI

Thanks for the response Carolyn! ActiveRain has been a very nice site to reach others.

In regards to your first comment, the no cost loans are certainly available and a great option with these low interest rate.  I really think though if a client has long term plans to stay in the home paying costs (at closing or "rolled into the loan") does make more sense.  Interest is interest and if someone can pay costs now to save alot more long term interest that is the best way to go.  For most, unlike in the past, any financing someone does now, with these low interest rates, will be the last loan ever done on the home.  Paying more now for long term interest savings makes even more sense now than ever before. 

I will always look at the period of time it takes to make up any loan costs and make sure I have my clients needs in mind. 

Thanks again and nice meeting you!

Aug 31, 2010 03:03 AM