Mortgage Billionaire Says Refinancing Opportunities Surge As Home Prices Reach 40-Year High

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One billionaire mortgage said now is a great time to refinance a home. That’s why. (iStock)

New housing data show that home values ​​are rising, reaching their highest levels since the 1970s.

A 17.2% rise in home prices in the country is significantly higher than expected next year, according to data CoreLogic Home Price Index Report… The report says that house price increases will slow to 3.2% by June 2022.

“For several years, home prices have been rising at about single-digit levels,” said Frank Martell, President and CEO of CoreLogic. “The recent double-digit price spike reflects the convergence of exceptional demand and persistently low supply. With a lot of cash aside, along with very low mortgage rates, prices are going up and affordability will become a more pressing issue for the near future. “

Homeowners can take advantage of these rising home prices and extract money from home equity through cash-back refinancing. Visit Credible to find out your personal interest rate and pulling cash out of the house to pay for home improvement projects or pay off debt at high interest rates.

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Mortgage Billionaire: Why Now is a Good Time to Refinance

Matt Ishbia, President and CEO of United Wholesale Mortgage (UWM), said homeowners should refinance their mortgage now for three reasons: to get a lower rate, get cash out of their home, or cancel their mortgage insurance because they have more equity.

“Someone will tell me, ‘No, it is not, interest rates are not at an all-time low. They were lower in July or August last year. ” But this is not reality, because the primary and secondary spreads were wider then, which means that consumer rates were not that low, ”Ishbia said. “Right now, consumers today are getting a lower rate than ever in 2020.”

Some mortgage lenders are encouraging homeowners to refinance, stating that lack of inventory can benefit those looking to refinance as fewer home buyers are looking for mortgages.

“While real estate has its ups and downs, we have never seen a market as hot as the one we saw recently,” Rock Mortgage Senior Partner Eduardo Adame said in a statement. “Basically, stocks have dwindled and buyers are getting tired and giving up trying to buy property. This is great news for homeowners looking to refinance their property due to the extremely low rates. Now is definitely the time to renegotiate your mortgage and potentially lower your monthly payment. “

If you’re curious about how much you can save by refinancing your mortgage, visit an online marketplace like Credible to compare multiple lenders at once and pre-qualify for a new mortgage without affecting your credit rating.

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Top reasons to refinance your mortgage

“Given the current state of the housing market, now is a good time for homeowners to save money by refinancing their mortgages,” Ishbia said. Here are some reasons why:

No refinancing fees: Federal Housing Finance Agency (FHFA) recently deleted its unfavorable market toll, allowing homeowners to save an average of $ 1,400 in closing costs, or even more savings on their monthly payments with the removal of tolls. The fee was introduced in the midst of the pandemic and was added to all mortgage refinancing on loans secured by Fannie Mae and Freddie Mac. But the Biden administration removed the board in August 2021.

“What does this mean? This means higher rates or lower fees for consumers across the country, ”Ishbia said. “This is a very positive outlook from all developers and all consumers because everyone saves money.”

Mortgage rates are low: Mortgage rates are at an all-time low, and the latest Freddie Mac report shows the average 30-year term for a fixed-rate mortgage. fell to 2.77%… You can use mortgage calculator Credible to estimate how much you can save on your monthly payment by getting a lower interest rate.

Increased cash out options: According to CoreLogic, home prices are rising at a record pace compared to last year. This gives homeowners more opportunities to tap their capital through cash-backed refinancing, Ishbia said. The capital increase may also allow some homeowners to opt out of private mortgage insurance (PMI)

“This means that many borrowers have much more capital in their home than you thought,” Ishbia said. “Even borrowers who got refinanced or bought a home during COVID can still have equity in their home and they can use it. But surely those who have been in their mortgage since it happened. “

If you are trying to decide if mortgage refinancing is right for you, contact Credible to speak with a home loan specialist and get answers to all your questions. On Credible, you can compare loan options to see if you can lower your monthly mortgage payment.

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Have a financial question but don’t know who to contact? Write to a safe money expert at moneyexpert@credible.com and your question can be answered by Credible in our Money Expert column.

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