Hello, your Red Headed Mortgage Guy, Dave offering some interesting information.
A few days ago I discussed the story that was in the news about 4.5% interest rates.
In my original article I mentioned that the "original" story was referring to 4.5% interest rates for "purchases" of homes to stimulate the economy.
Well, today the FEDeral reserve lowered the Fed Funds rate. This does not necessarily mean home interest rates are going down. After today's news and other discussions I have heard in the news, I'm starting to strongly feel that 4.5% interest rates MAY become a reality. AND not just for purchases. I know that doesn't mean that much to those of you who will read this, however read further. If people can refinance to a much lower interest rate, then this will stimulate the economy and maybe we can stop some of these foreclosures, and people, in general, will go out and start buying stuff. Which in turn will stimulate the economy.
This just goes to show that anything is possible...at least almost. To think just before Thanksgiving I was quoting 5.25% interest rates on a 30 yr. Fixed rate loan. Do you have any idea how excited I was. As I said the other day, who knows if we will get to 4.5% on 30 yr. Fixed rates, but it's looking a lot more like "reality".
Several of my clients have been asking me what they should do if they got into their loan 3 or 4 years ago. I advise them that one option is to apply a part of the monthly savings they would see from refinancing and apply it to the principal balance for a few years. This would allow them to catch up to the original loan they paid off and get them back on track to paying the loan off in less than 30 years. There are people that say this is not a wise option. I'm just saying it is "one" option and everyone's goals are different.
Here's a video I did for my friends, clients and agents. I hope you enjoy.
https://www.thinkbigworksmall.com/public/showArchiveVideo/1249/3207
You can leave comments on the video.
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