End the Toxic Relationship… With Your Rate

Our topic for today is ending a toxic relationship with your interest rate. My daughter just bought a new house a few months ago, and she told me that she’s not loving her interest rate. She mentioned the meme that we’ve all heard a million times since the interest rates started running up: marry the house, but date the rate.

When she called me yesterday, my daughter told me: “I’m ready to break up with this rate! I know rates are coming down… can we actually get the lower rate?” The conversation made me laugh!

Good News: Rates are Coming Down

There are going to be a lot of homeowners breaking up with their rates, because we are already seeing a pretty good run down in rates, which is creating opportunities for people who have bought over the last few years to refinance.

No one knows what track we are going to stay on with these rates. But if the window is open to refinances, then take advantage of it!

Preparing to Pull the Refi Trigger

We are talking to people about different “strike prices” – which means when rates reach a certain level, then it’s time to pull the trigger and lock in the lower rates.

We’ll get those loans all set up in the system and ready to go (even getting started with underwriting and appraisals). So, when the target rate hits, we can just pull the trigger, lock it in, and move to closing.

Data Points and The Upcoming Fed Meeting

Next month is the The Fed meeting when they discuss what they are going to do with the Fed Funds rate. Between now and then, there is another jobs number, which is pretty critical.

On a side note, there was another announcement about jobs this year that came out showing that 818,000 jobs were reported erroneously – so they were removed from the numbers. That’s pretty noteworthy since it changes the overall view of the job market this year. The jobs picture is not beautiful right now.

So, there are a few important data points that are coming ahead of The Fed meeting. If we can get some help with all of these things, then we will probably see rates come down. I’m not trying to guess how low interest rates will go, but I am saying that it will open the window for a lot of refinances.

Are You Ready to Break Up With Your Rate? Call Me!

If you are wondering whether a refi makes sense, please hit me up any time. It’s really simple: all I need is a mortgage statement, then I can plug the numbers into a spreadsheet, and we’ll see if the numbers make sense. It’s pretty straightforward.

If you need to break up with the rate that you’ve been dating, then give me a call any time!