With the economic downturn triggered by the pandemic, economic policymakers lowered interest rates, and interest rates continued to fall for a year.
There is no doubt that this epidemic has caused depressing news in many ways, as thousands of Americans are unemployed or have seen their livelihoods overthrown due to the economic downturn and strict government lockdown policies.
A bright spot? Mortgage interest rates have been falling throughout 2020, opening the door to strong refinancing transactions for US homeowners.
Christopher Popkin, a real estate agent at Grace Real Estate in New Jersey, said: “It’s not surprising that interest rates are so low. The Fed cuts interest rates to stimulate economic growth, because low interest rates mean consumers are more willing to buy homes. , While still keeping the money in the buyer’s pocket.
“Traditionally, this happened when the economy was weak,” Popkin added. “Reducing interest rates will encourage home buyers to purchase, refinance and invest.”
Due to the pandemic, the Fed quickly cut interest rates in March because investors turned to safer investments such as Treasury bonds. Ben Schandelson, the loan originator of MJS Financial LLC in Boca Raton, Florida, said: “Last year, our interest rate was around 3.25% to 4%. Now, mortgage interest rates are in the mid-to-high range. 2% range.”
If you have been thinking about refinancing a loan, please visit an online marketplace like Credible to check the current refinancing rate or withdraw cash from your home to pay off high-interest debt.
Get the best mortgage transaction
How can mortgage refinancing borrowers get the best mortgage loan at the best price? Loan experts have some ideas about borrowers.
1. Expand the search range
Chandelson recommends talking to multiple lenders and brokers to find the best interest rates and terms. He said: “Some lenders may give you a waiver of assessment, or only need one month of assets.” “Borrowers should know that many borrowers may cancel your credit before offering an interest rate agreement. This may lead to multiple hardships. Credit pulls, thereby damaging your credit.”
To get the lowest interest rate, research different mortgage options, including adjustable rate mortgages (ARM), and always get interest rate quotes from at least three lenders.
“Yes, to get pre-approval for a mortgage will require a strict credit check of your history,” said Polina Ryshakov, head of valuation at Sondae, the residential real estate market. “However, if you make several loan inquiries at approximately the same time, it will only lower your credit rating once.”
Explore all your mortgage refinancing options by visiting Credible to compare interest rates and lenders. There, you can compare the pre-qualified interest rates of multiple lenders in three minutes.
2. Review your mortgage lender
Before signing on the dotted line, make sure to thoroughly review your mortgage lender. “Look at their online reviews,” said April Macowicz, a broker at Big Block Realty in Lompoc, California. “It depends especially on whether they have a history of paying off loans on time and whether they provide cash back incentives. Check their fees and Their customer service response time. These are the most important questions you may ask when reviewing a mortgage lender.”
Use Credible’s free online tool to research different mortgage lenders and see what your loan options are
3. Make sure your lender moves quickly
Mortgage refinancing borrowers should ask potential lenders how long it will take to process and approve your loan, and ask whether the lender will lock in your mortgage refinancing interest rate when applying.
Paul Buege, president of Inlanta Mortgage, a mortgage bank in Pewaukee, Wisconsin, said: “Many consumers don’t know that most lenders are lagging behind due to the large number of loan applications and cannot get loans quickly.” You should find a willingness to lock in the loan interest rate when applying. Lenders who can strongly confirm that they can complete the purchase loan within 30 days or less and the refinancing transaction within 45 days. “
Click here to learn more about each loan type and how to get a lower interest rate today.
4. Don’t buy on interest rate alone
Borrowers should know that once things such as fees, points, and other costs are added to a mortgage refinancing transaction, the lender with the lowest mortgage interest rate may not be the cheapest. Popkin said: “Do your homework and you will get the most benefit-an education is your safest choice.”
Make sure to use the mortgage refinancing calculator to get the best mortgage refinancing transaction.
5. Use leverage
Popkin recommends comparing the terms of all your lenders, and the best way to do this is to use a “pros and cons” list.
He said: “If the lender’s terms do not meet your wishes, please show them your other options and negotiate.” “Let them match these points, rates and fees competitively to get the best from them The results of the mortgage refinancing.”
Visit Credible, contact an experienced loan officer, and answer your mortgage questions.