12/15/2023
Please Proceed with CAUTION!!!
👉 You will begin seeing posts about mortgage rates finally coming down and they are, however, there are reasons to be VERY careful.
****If you do not yet own a home, please jump to #4 and #5.****
1.) You may (will) start receiving phone calls, emails, and texts about refinancing. Many will come from lenders whom you do not know and they are simply trying to "sell" you. Be sure to talk to a mortgage professional whom you trust.
2.) Is it too soon to refinance? Did you recently buy a home? If you paid points to buy down your interest rate, that money could be lost. An analysis should be done by a professional to ensure that it is financially worthwhile.
3.) If you closed on a home loan within the last 6 months, please talk to the loan officer who handled your financing. Loan officers can be heavily penalized (they pay back every penny they earned and often more) if you pay off your loan too soon. (typically within 6 payments) This is not often discussed, but it is a reality and can be truly devastating. If you ARE going to refinance within this time frame, please give that lender an opportunity to do the refinance so that they can perhaps break even. It's definitely not fair, but it is a reality in the mortgage world.
4.) Will rates fall further? Most likely. Will we see 3-4% again? Maybe 🤷♂️ but it’s a long shot. Rates will continue to rise and fall and if someone tells you that they know for sure which direction they are going, please know that their crystal ball is surely broken! There are no guarantees!
5.) For those of you buying a home..... Don't stay on the fence! If you can afford the payment, jump off of that fence! When and if interest rates come down, the competition will heat up fast. We have seen this first-hand and it wasn't pretty. Take advantage of a lull in the market. You can always refinance in the future (see #3), but you can get into a home before prices increase more!
✨Do you have questions?
✨Are you thinking about a refinance when rates do come down and you want to be sure that you get the best possible rate with someone you trust?
☎️ Please call, text, or email me and we can talk about your specific situation!
Nathan Knottingham
[email protected]
503-949-7517
NMLS 270165
