Covid-19 fears, well-founded or not, are giving rise to a bit of stock market hysteria. People are pulling their money out of international stocks and putting it into bonds. When that happens, the bond rate goes down. Historically, though not actually tied to it, when the bond rate goes down, mortgage rates go down. We have seen this already as some federal loans, like FHA and VA, are now offering as low as 2.8%.
People are refinancing to take advantage of this huge drop. I have personally been investigating refinancing my rental properties, something that would save me $165 each month per property.
When asking my preferred loan officer about this, he acknowledged that while he could get me the lowest rates, he realized that for this refinance, it would make better long term sense for me personally to have someone else do the refinances.
And THAT is why he is my preferred lender. He is willing to delay or even give away business if doing so will benefit his client.
So, if you’re thinking about refinancing, feel free to do it now while home values are great and interest rates are unbelievably low! If you need a loan officer to refinance with, I’ve got someone to recommend to you, too!