If you’re a homeowner and you’ve decided to stay put, should you refi?

Conventional wisdom says if you plan on staying put for a while and save enough to pay off the cost of refinancing within 18 months, and you can drop at least .5%, refinancing makes sense. Lisa and I just refinanced our primary residence and dropped a whole 1%! We’re going to be saving $332/mo which we will be putting back into the mortgage to pay it off 7 years sooner! If this interests you, you can get the process started AND when the time looks right, you can lock your rate. That’s what we did.

There has been so much volatility in the market and there has been a lot of confusion surrounding the Feds lowering the prime rate. The interest rates went down and mortgage lenders were getting inundated with refinance applications. So, in order to protect their workforce (and their margins), they inflated the rates so that they keep up with sales and refis. That's why you saw the yoyo effect. Behind the scenes, there are also other factors at play here as well and some unintended consequences of the Government trying to help with Mortgage Backed Securities. 


The bottom line is that today there are some great rates (see chart below) AND there could be better rates coming in the future. You just need to be prepared to strike/lock when/if they dip again.

To answer your next question, yesI know of some very awesome lenders that I can refer you to in order to get your some very cool reports on comparison programs, savings over the life of your loan, as well as your breakeven date. Just text me a253-227-1609. One of my lenders works in 5 states!

Today’s Weekly Mortgage Rate Sheet


Other Ways to Save Money
You may also want to check in with your auto loan servicers and credit card companies and see about getting lower rates across the board to save you money! Some auto lenders allow for 1-2x a year to skip a payment. Can't hurt to just ask - if you need to. If you are in need of extra financial relief, here are some additional resources:

For small businesses, it is my understanding that small businesses will possibly be eligible for unemployment benefits (solopreneurs)as well as loans. Click here for more information on the SBA site.
Great news is that not only has the Federal Government delayed the filing of income taxes, Pierce and Thurston Counties have delayed the due date for paying property taxes (IF you pay directly and not through a mortgage payment). See the Federal Government's COVID 19 Families First Resource Toolkit. 
Watch Out for Scams
Sad to say, there are some people that are taking advantage of how vulnerable we are right now. Be extra careful and vigilant about protecting yourself and your family. A list of scams to watch out for from the FCC.
Be safe, stay well. 


Shane Klinkhammer
RE/MAX Northwest Realtors
M: 253-227-1609

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