Second Chance Refi: Today’s Low Bids Offer Hope For Previously Rejected Candidates

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Mortgage rates have remained below 3% for a month.

Last week on average 30 year fixed rate mortgage decreased by 0.02% to 2.94%, according to Freddie Mac… We have seen only minor weekly shifts in mortgage rates this month, which is good news as the current mortgage and refinancing rates extremely low.

At the moment, bets don’t seem to be ready for a big move in either direction. “What can actually happen may happen in the next couple of months,” says Les Parker, managing director of Jacksonville, Florida. Transformational mortgage solutions… The reason for this is balancing factors. Latest reports show increased inflation, which usually leads to higher rates. But the Federal Reserve considers this to be temporary and wants to see rates low for the foreseeable future.

As the economy begins to recover and many who have lost their jobs can return to work, today’s low rates present an opportunity for homeowners who missed out on the refinancing frenzy of last year. “If you work in the same industry… and haven’t worked for a while, especially during a pandemic, lenders tend to… show more empathy,” says Jeff Lazerson, president of the South California company. Mortgage grader

Most lenders were overwhelmed in the past year as record low rates sparked a surge in demand for refinancing and new home loans. In response, they became more selective and tightened lending standards. But now those same lenders are fighting for business.

If you were unable to qualify for a loan due to a unique or difficult situation, such as business income or credit problems, “all of these people should run back to the lenders now because the chances are that the same lenders are likely to approve of them. today, despite the fact that they told them no last year, ”says Lazerson.

This is good news for those who have been blocked. mortgage refinancing last year and are still looking to take advantage of the low rates for savings.

How to Decide When to Refinance to a Lower Rate

The decision to refinance your mortgage comes down to saving money.

But it’s only worth it if you can get a rating that is significantly better than yours right now. “I believe people should raise their interest rate by 75-100 basis points. [0.75% to 1%] to make economic sense, ”says Parker. But being able to lock in a lower interest rate is only the first step towards deciding whether it makes sense to refinance – you must also factor in the closing costs.

Even if you use refinancing loan without closing costs This way, you don’t pay for commissions out of pocket, you pay for them anyway, usually adding them to your loan balance. Depending on how long you end up holding the loan, these upfront costs may outweigh your savings. So, you need to count first.

Therefore, before you sign the dotted line, make sure the lower rate and commission is worth it.

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