You are Just Dating that Loan!

I sold a home about a year ago to a guy. It was a challenge to get him a loan. It was an FHA 203K loan. He was cash strapped and we built some closing cost into the cost of the loan. There was that Mortgage Insurance that comes with FHA. Over all not the best possible loan available but it was the one he needed to do to get a home.

Well one year latter he is refinanced into a great new loan saving about $250.00 a month on his payment. Why? Well he was not married to that last loan. He did not have to stay with it. When a better option came along he took it. He did a streamlined FHA refi, so he still has an FHA Loan. But he has lower interest rate, lower Motgage Insurance, and he got a rebate on some of his Up Front Mortgage Insurance. So he got his low balance lowered and skipped a month of payments during the refinance.

Did he marry this loan? I hope not, because next year he may even get a better refi into a Conventional Loan and save even more.

So you ask, “But what if rates go up?” Well if rates go up it is a good thing he got into the loan he had when he got it; because nothing better is coming a long

What's the point of this? Do not let a longing for better rates or loans keep you from buying now. If rates drop you can refi. If you wait for the rates to drop they might or might not, but if the drop the odds are the home prices have gone up to off set any savings. If they do not drop you will be glad you got the loan you did.

Home Point Real Estate is located in Brentwood Ca and provides service to the East Contra Costa County Communities of Brentwood, Oakley, Discovery Bay, Antioch, Pittsburg and beyond. Give us call regarding Buying a Home, Selling a Home, or Real Estate Investing.