Latest / Connor with Honor: AI, Real Estate and Real Life / Two days from a RE-FI boom - T-minus 39.875 hours and counting
Transcript
- 0:00what we're seeing an incredible amount of refinances those phone calls because the feds gonna be meeting here in the next few days if you're watching this where at the 16th of September if you're watching this after there could be certain things that might apply to you but I'm gonna go through a blog post that I wrote here at Santa Clarita Openhouses com so you'll get here go to the top this is going to be the thumbnail should you mortgage mortgage rates seeing closer to the pivotal magic number spurring refine calls and I get this because a client had called and said that the lender that they had used to purchase the residence that I had just closed with them not too long ago is calling them the feds not meeting for the next couple days maybe it's a precursory call to them maybe having being being put in a position to refinance and if it's for educational purposes waiting to see what the feds gonna do that's just lovely and that's good you should get that information that you need if today the lender were to say hey rates have gone down which they have from when they purchased not as much as they're probably gonna go down here the next few weeks and after the next couple days but would you like to refine if they were to say yes and he were to lock them in and finish it and get it why not finish but it get it at least started today to the point of no return even if freights drop lower that would make me sad and I don't know if that's the case but it's just good information to know if you start to get phone calls that are talking about refine and you have purchased a few things that I point out here in the blog article now of course here I've gone through what's going on with interest rates I give some comparisons as well some of the quotes of some of the biggies in the industry looking at what they're looking at as far as interest rates go and we can see with the limited inventory if they happen to come down it's gonna be standing room only as far as real estate this gives you an idea where the interest rates are and what happens when those rates start to adjust at these figures here now all interest rates of course are gonna be very much dependent on your credit profile I'm not a lender I'm a realtor but we interact with lenders all the time because a majority of the people that are coming to buy real estate have to finance it so we should have that conversation with their real estate lender to make sure well No. 1 they're qualified and if they're not qualified how can they become qualified and then take it from there and see if this is really what they want to do but other than that you can get all the numbers here and I get to give you that rundown now here in Santa Clarita what we've done is we've seen that we have that limited inventory that the rest of the country is touty we don't have a lot out there for sale and the listings that do hit the market they don't last very long they get tied up in estro 10 days maybe 15 that time is starting to increase not a lot but it is so I'll keep you posted on that front as well if that's gonna indicate a market change but I just need more time before I can give you a good idea as to what's happening now moving past that there's a couple things if the lender you've been contacting from your lender and there's gonna be a refinance couple things you might wanna consider as I put in here you know how long have you had the loan is this a loan that you just didn't happen to refine you've had it for 15 years now you're gonna refinance it into another 30 year mortgage in most circumstances that wouldn't make a lot of sense because you only have 15 years left how do you equate that additional 15 years to now have a full 30 year mortgage at a lower interest rate when if you would have just have kept paying at the previous interest rate the costs might not have gotten even close to what this refinance is going to cost in the way of time and that time equates to money so there are several considerations on that front but basic bear bones if you don't have anything outside the realm of normalcy then what'll end up happening is maybe you purchased last year or two maybe when you did the interest rate was a little bit higher when does it make it worth it for you the rule of thumb generally could be a savings of a half a point or half a percent in your rate that's usually makes it worth it but those numbers need to be looked at they can say general rule of thumb but maybe you have a particular type of mortgage maybe if you were to refine it's gonna create more financial burden on you I don't know if that's gonna be the case but just because the lender that you used is calling and maybe you didn't even like them but just because they're calling saying to refine okay well maybe that's gonna spur off an idea that you might wanna consider a refinance but this blog post that I put together is gonna give you some ideas as to what to look for so those are a couple things it's gonna depend on how long you've had your current mortgage cause you're gonna be starting over 30 more years you've only been paying a few months probably not a big deal if you're getting a half a point savings and you've only been paying on it two or three years maybe that's okay as well but it's gonna depend on your long term plan are you done in the next couple years you're gonna be retiring that looks like the way it's gonna go and you're gonna leave and go to Idaho or Florida or somewhere else if that's the case then maybe a refinance wouldn't make sense at this time you just have to see all the numbers and yes they cost money you'll have to pay somebody to do it in some circumstances the bank that currently holds the mortgage they might not be a bad option but at the end of the day games can be played by all in some circumstances I would probably almost rather go with somebody maybe I used in the past if they can at least match the rate that my current mortgage holder is promising me and then of course look at those costs as well this is what the refine boom is going to be lenders do a very good business at the time that rates do drop it looks like here in the next couple of days that's going to happen it's been rumored for a long time but again this looks like it might actually happen I'll be able to call BS on myself or say it happened in the next couple days so I'll be talking to you tomorrow I'm sure once it does though and if interest rates do come down you're not gonna have to hurry into anything you can take a couple days to digest where you are and get good information from the lenders that you know and if you don't know anybody or wanna try to find someone else give me a buzz I'll be more than happy to run that interference for you because I'm Connor with honor have a great day thanks for watching this about refinancing I think it'll at least give you an idea as to what questions you might wanna ask what these costs look like and so on I'm Connor Macgyver over and out