An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How servicers can access timely, accurate data insights

Learn how to navigate the challenges in today’s market – for example, the need for ongoing, on-demand access to near-real-time data and the ability to access those data insights in a timely and accurate manner.

Steve Murray on new brokerage models, CFPB crackdowns

Today’s HousingWire Daily features a discussion on the emergence of a new brokerage model and the validity behind the concerns against institutional investors.

Real Estate Enthusiasts

If you haven’t refinanced yet, is it still worth it?

Experts believe mortgage rates will rise this year, but does that mean it's too late to refinance?

Mortgage rates vary. Take the pandemic, for example. Interest rates were at an all-time low last year, which is why the housing market saw such a spike. Consumers took advantage of those low rates. Some purchased a new home and others refinanced their mortgage. 

According to Freddie Mac, borrowers saved thousands in 2020 by refinancing. But as the world slowly gets back to normal, mortgage rates have slowly been rising. In recent weeks, however, Delta variant fears have been fueling a dip in rates. Is there still time to take advantage of low rates and refinance your home? Keep reading to find out.

Pros and cons of refinancing

Refinancing means taking out a new mortgage loan and replacing it with your current one. One of the reasons why people refinance is to obtain a lower interest rate. With a lower interest rate, homeowners pay less in interest and can even shorten the length of their loan.

While refinancing can be a good way to build equity and manage debt, it can cost money – anywhere between 3% to 6% of the amount of debt you still owe on your current loan. So while you might eventually save money from refinancing, you’ll also spend money on closing costs. For example, to refinance a mortgage you’ll have to pay an application fee, appraisal fee and maybe even attorney fees depending on where you live. There’s also a chance your lender will require another title search and title insurance, which would add to your costs.

Not to mention, If you’re planning on moving, you probably shouldn’t refinance. You also want to make sure the long-term costs won’t be more expensive than potential savings.

Impact of delta variant 

With worry surrounding the highly contagious Delta variant, some states are mandating masks again. In fact, some countries are even shutting down their borders in an attempt to slow down the spread. While it’s too early to know the impact this variant will have, if it’s similar to the impact of the COVID-19 pandemic, the housing market might see another surge. And interest rates could take a deep dive again. 

Should you refinance?

Even though experts believe mortgage rates will rise in 2021, rates are still historically low. If you’re locked in a higher rate, it may be worth talking with your lender.

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