Mortgage Refinance – NOW’S THE TIME!!!

I just read this post from a trusted Lender here in Austin and I can't agree more.  The economic forecast for 2021 and the Real Estate market is extremely positive.  Basically, there are 3 main factors that impact the Real Estate Market.  The first are interest rates. The Federal Reserve is predicting that these insanely low rates are going to continue through 2023. Great news for all home buyers.  The second factor is demand, and if you have been watching the market at all, you will know we have a housing shortage across the country and most definitely here in Central Texas.  The 3rd factor is unemployment, and the Feds are also predicting that the unemployment rate will reach close to 4% by the end of next year, 6% is considered fully employed.  So that's good news for our economy, the RE market and unemployment.  So, if you are considering buying or selling real estate this year, or investing, this is YOUR YEAR.
 

Mortgage Refinance – NOW’S THE TIME!!!

First, Happy New Year and HALLELUJAH for the book closing on 2020.  Here’s praying 2021 brings us closer to “normal”.  And while much of the last year has been fraught with peril, there is one bright spot.  Mortgage interest rates are at an all-time, never before seen, crazy low.  

I wrote a similar blog last March when, at that time, the same was true – record low rates.  Many homeowners took advantage then and refinanced their loan.  And now ten months later, they have fallen even further.  A good number of those that refinanced in early 2020 are now on refi round two, saving even more money.  As stated in the title, now is the time!

Consider these numbers:  On a 30 year 400,000 loan, dropping from 4.25% to 2.75% saves $335 on your monthly payment.  That’s real money!    

We often hear you should consider a refinance only if you can reduce your rate by one percent or more. Do not buy into that often-faulty “rule of thumb”.  Do not discount, for example, what a three quarters percent drop might do for you. On that same 30 year, $400,000 loan, the money saved dropping from 3.5% to 2.75% is $164 a month.  Further, if that $164 were paid each month as extra principal on a new loan (keeping the payment what you pay currently) you would knock 4 years off your loan term and save $28,000 in interest.

Now is also the perfect time for a cash out refinance.  A cash out refinance allows you to turn a portion of the equity you have built up in your home into cash that you can use for whatever you like. It is your hard earned, invested money and there are no limitations on how that money can be spent, including paying off other debts.  We often see homeowners knock out significant other debts and yet, because of the low rates, keep the same or lower monthly mortgage payment.  

The question whether or not you should take a cursory look at a refinance is easy. You should! It’s quick, it’s painless and it’s free. All I need is your last mortgage statement, estimated credit score and estimated home value.  With those, I can tell you in two minutes what your new rate and payment would be.  Email me (trey@treypowers.com) those three items and let’s see how much money YOU can save.

Most importantly, here’s wishing you and your loved ones abundant blessings in 2021.

Trey Powers is a licensed mortgage loan officer with City Bank Mortgage, a Texas-based lender. He was voted three times Best Mortgage Lender in Dripping Springs. Contact: 512-203-5869 & trey@treypowers.com. Visit TreyPowers.com


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Lisa Little

Lisa Little

License No. 639902
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