Today’s mortgage interest rates are very close to the lowest rates in recorded history (3.3 percent according to Freddie Mac). This means now may be the perfect time to purchase a new home or refinance an existing mortgage. The low rates may also make it financially feasible for families sitting on the sidelines to enter the housing market.
Regardless of whether you are considering a first-time purchase, a larger dream home, downsizing or refinancing an existing mortgage, it is important to work with an experienced and trusted lender.
According to research from Zillow, for-sale inventory has declined by 6.4 percent compared to last year, reinforcing the importance of being able to act quickly and present your best offer. Working with a seasoned mortgage lender ensures buyers have access to the best possible mortgage products to meet their specific financial situations.
Talking to an experienced loan officer will help you determine if a first-time homebuyer loan is the best option for you or a different type of mortgage product. Other mortgage products that could meet specific situations include programs for self-employed individuals, fixed-rate, adjustable-rate, interest-only, government-backed or possibly even a reverse mortgage.
Whichever mortgage product fits your unique needs, securing a prequalified loan from a loan officer provides you with greater control. Prequalified buyers know exactly how much they can afford and real estate agents believe prequalified purchasers are able to make better offers.
Homeowners waiting on the sidelines to catch the lowest rate to refinance an existing mortgage should act now, as well. It is safe to say that it may not be worth waiting and missing a sound financial opportunity. Saving money on a mortgage will help you build your wealth.
By refinancing today, homeowners can potentially save hundreds of dollars each month. That can translate to thousands of dollars over the lifespan of the loan.
If the homeowner has owned their house for five or more years, refinancing may help remove the requirement for mortgage insurance which also increases savings. Benefits of refinancing higher rate mortgages can include lowering interest rates, providing better terms and possibly shortening the length of the mortgage.
If now is not the ideal time for you to purchase or refinance a home, stay in touch with your lender. Keep saving and keep your credit in good order so you will be ready when the timing is right for you.
Customers Bank is a full-service lender providing a full array of consumer and business loan products. The bank is an active mortgage lender in Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Virginia and the greater Washington DC region. Customers Bank is a member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation. Customers Bank is an equal housing lender.