03/16/2020
is dropping knowledge on us today! 🙌🏾 Posted • BREAKING NEWS | Because you need to understand THE DIFFERENCE and how this does and does not affect your home buying or refinancing needs. The Fed cutting the interest rate does not directly relate to MORTGAGE interest rates. Mortgage Rates will NOT be near Zero!
Mortgage interest rates on the secondary market actually went up over 1% last week. It will be interesting to see how the bond market reacts today. Contrary to a lot of posts floating around the internet, please DO NOT make any panic moves at this time.
We do not know how interest rates will react today however we have a gut feeling that most of this money will help stabilize and encourage investment in the stock market.
Mortgage rates had fallen to a record low two weeks ago, but a flood of refinance applications overwhelmed lenders and caused investors in mortgage-backed bonds to back off. That, in turn, caused mortgage rates to jump more than 50 basis points in one day and hit their January high by the end of last week. The Fed's move will likely reverse that course yet again.
Please note refinancing is NEVER free. You will either pay in rate (no closing cost option) or you will roll your closing cost in to your mortgage. If you currently have an FHA loan DO NOT refinance to ANOTHER FHA loan unless your rate is lowered by at least 1.5% because you will still have to pay PMI. You should be refinancing from a FHA loan to Conventional loan to eliminate PMI or lower your MI.... has been my trusted name in lending for more than a decade now and she keeps me educated, informed and my clients on the right path. Together, we promote SMART financial decisions for our clients... And not just getting the deal done to get to the closing table. “If it don’t make dollas’, it don’t make sense!” ______________________________________________________________LaKiia Roper, Wanna Chat??? You can reach me at 404.720.2996