If you're wondering whether to refinance now or later, what follows is a list of five great reasons to do it now!
1. It’s simpler and faster than it used to be
Gone are the days when folks were obliged to visit one-on-one with a loan officer at their office, returning several times to assemble the right documents. With web tools like Prospect Financial’s application portal, the loan lives online. With just a few phone calls, for example, Prospect can get a loan closed in as little as 12-15 business days. A fast turnaround for an important financial decision is imperative with rates shifting.
2. Rates are still near 3-year-lows
No, you didn’t miss out on all the savings just because you might have missed August/September’s three year lows! The good news is that the rates are still very near those lows due to Global trade talks, bond market volatility, and drops in the US Treasuries. Mortgage News Daily reports that this week’s rates are the lowest they’ve been in nearly a month. So if you’re reading this promptly, it’s likely time to get some rate quotes.
3. Everyone else is doing it!
While it may sound like a “peer pressure” joke, it’s true! Black Knight Inc. - a mortgage monitor - reports that inquiries into refinance rates are up 458% compared to this time last year! Mortgage News Daily tells us that the total number of refinances are up 10% from last week, and up 163% from last year. Clearly there’s something going on with rates (see #2), and you’re going to want to be a part of it.
4. It could bail you out of a tough spot
A lesser known benefit in 2019’s mortgage industry is the ability of folks who are “underwater” - owing more than their home’s value - to refinance their way out of it. If rates permit, you could take advantage of Fannie Mae’s high loan-to-value refinance to owe less per month. It’s at least worth looking into, and speaking to a loan officer to see if you might benefit.
5. You could likely stand to save money
Obviously, you should only refinance if it will save you money. If you can roll closing costs into the loan and still lower your monthly payment, you should absolutely refinance if you are able to. Black Knight again tells us that nearly 11 million people stand to save about .75% of their mortgage rate right now. That’s a lot of people who should call a mortgage company to see if there is a benefit for them today. Given the average 2019 loan amount, a .75% reduction is huge.
Before taking the next step, do the research! Speak to a loan officer to find out if a refinance could benefit you. Head over to our website to receive a quote. You don’t even have to speak to a loan officer there, and you can check rates any time of the day multiple times!
Prospect Financial Group
948 Garnet Avenue
San Diego, CA 92109
NMLS: 349089 | BRE: 01837707
Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.
"I've had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership."
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 365482
948 Garnet Ave
San Diego, California 92109
Phone: (858) 605-0952