This week’s post is on interest rates. Where oh where will they go from here??!!?? Right now we are on a dip in the upward movement and I can currently offer 4.625% with zero closing costs on a 30 year conforming fixed. Of course restrictions apply and this is if you have a good credit score, equity, good employment history, blah blah blah disclosure disclosure disclosure. Call me if your current interest rate is 4.75% or higher and we’ll see if you can improve your rate. As far as where the rates will go from here? One thing that most people are in agreement on is up up up. Interest rates always come down very slowly and go up in leaps and bounds. Earlier this summer, I was offering 3.25% 30 year fixed rates with zero closing costs. Less than 3 weeks later it had jumped to 4.75%! It doesn’t matter how low the rates go, I always seem to have a few clients that want to hold off on the refinance because they think it will go lower. My pitch is this: if it’s a zero cost refinance and you can lower your rate by even 1/8% why wouldn’t you do it? It doesn’t cost you anything and you can enjoy the lower rate while you speculate that the interest rates will continue to drop. If they do, then we’ll do it again and still charge you zero fees. Most of us will never pick the bottom of the market but how many of us will lose money waiting for that perfect rate? My next post will be further explanation on how a mortgage broker / loan officer can make money without charging you closing costs. Is it really free??
Posted on: Wed, 25 Sep 2013 23:10:13 +0000
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