In July, there was a surge in mortgage refinancing activity. according to mortgage data provider Black Knight, due to the instability in the housing market caused by the Delta coronavirus. Biden administration solution remove The report said the controversial unfavorable market refinancing charge for loans secured by Fannie Mae and Freddie Mac also “undoubtedly increased” refinancing volumes during the month.
“Market uncertainty about the increase in the number of Delta options in the US has helped drive the 10-year Treasury yield down to its lowest level since February,” said Scott Happ, president of secondary marketing technologies at Black Knight. “This, in turn, has put downward pressure on mortgage interest rates as our OBMMI Daily Interest Rate Tracker shows that the end of July corresponds to a 30-year period of 2.99%, down 17 basis points from the previous month. ”
According to the report, the interest rate lock volume, which shows the number of borrowers who have locked in their mortgage rate, increased 5.5% in July. And now the share of refinancing in the national market is 50% after five months under it.
Read on to find out more about how mortgage refinancing can help you pay off debt in a shorter time frame, as well as help you save money to use elsewhere. Of course, it’s important to weigh the pros and cons of the referee based on your personal financial situation.
If you have decided that home loan refinancing is the right option for you, visit Credible to find personal rates and lenders in one place. Click here to view today’s refinancing rates and view home loans based on annuals, commissions, and monthly payments based on the loan amount.
A Black Knight report showed that mortgage purchases fell 7% in July amid a competitive market for home purchases. But this decline was more than offset by an increase in refinancing and cash-based refinancing rates, which rose 24% and 20%, respectively.
“While we haven’t seen homeowners looking to refinance react so quickly or so strongly to such small rate changes in the past few months, they certainly did so in July,” Hupp said, adding that at interest rates below 3 % “, A very early look at the blocking data for August suggests that it is the same in the first days of the month.”
When rates fall below 3% again, homeowners can save hundreds on their monthly payments. It is very easy to apply for mortgage loan refinancing. Visit an online marketplace like Credible to get pre-approval for the loan amount in minutes without affecting your credit rating.
Why is now a good time to refinance
It is important to remember that there are many market factors that help create the best conditions for homeowners to benefit from a mortgage return. Some of these include:
- Low interest rates
- Increased cash-out capability
- Reduced refinancing fees
1. Low interest rates: Interest rates affect not only the total amount you pay over the life of your home loan, but also your monthly payments. The rates are at historically low levels, and quick action to use them can help you potentially save thousands of dollars in interest.
Even those who bought a home shortly before the start of the coronavirus pandemic can save hundreds every month by refinancing at an interest rate below 3%. Visit Credible to view a rate table showing multiple lenders at once. with different interest rate options to get borrowers a lower monthly payment.
2. Increased ability to withdraw funds: Equity capital grew in the second quarter of 2021. Now, according to last report from ATTOM Data Solutions.
Last year, only 27.5% of homes were wealthy. This means that many more homeowners are able to use their home equity cash to renovate their home or pay off high interest rate debt at a lower rate.
“Rather than wreaking havoc on homeowners, the virus pandemic helped create conditions that improved household balance sheets across the country,” ATTOM director of product Todd Theta said in a statement.
3. Reduced refinancing fees.: Black Knight report notes that the removal of unfavorable market refinancing fees helped boost mortgage refinancing rates in July. Although the due date for the commission was set at the end of August 1, 2021, many loans issued in the month prior to that closed after that early August date, so lenders did not charge a commission.
Removing the controversial commission helps homeowners save an average of $ 1,400 in refinancing fees that were added to closing costs, or lower the homeowner’s interest rate for those who choose to pay the commission over the life of the loan.
If you’re curious about how much you can save on your monthly mortgage payments by refinancing your home loan, contact Credible to speak with a mortgage expert and have all your questions answered…
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