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When mortgage rates drop, homeowners typically wonder: Should I refinance my mortgage? Since the start of the year, mortgage rates have been on a slow, steady decline. We may even be experiencing a mini-refi boom! This is great news for those who are looking to refinance their mortgage.

Latest Breaking News

On March 19, 2019 the Fed did not raise policy rates. And, based on Fed projections, we likely won’t see another Fed rate hike until 2020. So, now is the PERFECT time to refinance your mortgage.

With mortgage rates today, there are refinance opportunities for all types of homeowners. The typical refinancing household will be able to save more than 30% annually on their mortgage. For some, you may be able to save even more.

Is it time for you to consider a home refinance?

In general, you should consider a refinance if a refinance will save you money. Like we said before, a home refinance could save you thousands of dollars per year! (Think about those savings and what you could do with that extra money).

Bottom Line:

Current mortgage rates are holding low. And today’s mortgage rates are lower than they’ve been in months. There are refinance opportunities everywhere!

If you missed your chance to refinance your home last year, now is the perfect time to get the process started. Contact Greenway Mortgage and we’ll put you in touch with an expert loan officer.

 


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For the Week Ending March 22, 2019

 

 

EXCITING NEWS THIS WEEK!

  • We could be entering a mini-refi boom. Since the start of the year, mortgage rates have been on a slow, steady decline.

  • The Fed did not raise policy rates at this month's FOMC meeting. Based on Fed projections, we likely won't see another Fed rate hike until 2020.

  • Now is the PERFECT time for your clients to refinance their mortgage! 

    • With mortgage rates today, there are refinance opportunities for all types of homeowners. The typical refinancing household will be able to save more than 30% annually on their mortgage. For some, you may be able to save even more.

    • Contact us if you have a client, a friend, or family member that has never refinanced or is interested in learning more about rates today! 

 

  • Jobless claims fell to 221,000 last week. That's a 4-week low, as the labor market tightens further following the 5-week government shutdown.

 

 
 
  • Home builders remain optimistic about the housing market as mortgage rates continue to fall. Lower rates can make mortgage payments more affordable.
 
  • Mortgage applications rose 1.6% over the previous week, helped by lower rates. The average loan size set a record for the 3rd week in a row, reaching $327,500.
   

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


For the last several years, home values have been rising, which means homeowners have been building equity. Now is a great opportunity to leverage that equity to avoid or eliminate high interest debt.

Recently, the 2018 Houzz & Home Study revealed:

 “Homeowners with mortgages have seen their home equity more than double since 2011, increasing to a record-setting $8.3 trillion in 2017.”

The average homeowner gained $16,200 in home equity between Q2 2017 and Q2 2018 according to the latest release of CoreLogic’s Home Equity Report.

Since 2011 home values have increased significantly throughout the country, with prices rising by 5.1% in 2018 alone. When surveyed, homeowners revealed the top four reasons why they felt their homes had increased in value.

  1. Desirable Location

  2. Improved National Economy

  3. Improved Local Economy

  4. Low Home Inventory in My Area

How are Homeowners Taking Advantage of this Opportunity?

Many homeowners are considering cash-out refinances as a way to access the value that accumulated in their homes. A cash-out refinance replaces your current loan with a new term, interest rate and monthly payment. Read more about Cash-out Refinances in our latest blog.

Buying a home is like having a “forced savings account.” Making a monthly payment on the loan, along with any property appreciation, builds value in the home.

You cannot access that value (equity), without selling. Instead, you have to borrow the equity, which a Cash-out Refinance allows you to do. Of course, it’s important to have a bit of home equity first.

Wondering How Much Home Equity You Have?

To figure out how much home equity you have, you’ll want to find out what your home’s value is and how much you owe on your mortgage. If the difference between the two is a positive number, that’s the equity you have in the home. However, if you owe more than your home is worth you may not be a candidate for a cash-out refinance.

Speak with a Greenway Loan Officer today to see what your options are. One of the perks of having worked hard to build equity in your home is that the equity is available to you when you need it. 

What can the money can be used for?

  • Home Remodeling or Repairs – most popular!

  • Emergency

  • Debt Consolidation

  • Starting a Business

  • Paying off College Tuition

  • Purchase a Second Home

 

Benefits of a Cash-Out Refinance

  • Potentially secure a lower rate and monthly payment

  • Mortgage rates are typically lower than credit cards or personal loans

  • With improvements, you could increase your home’s value

 

Bottom Line:

2019 is a great year for homeowners who want to take advantage of their home equity. In fact, CoreLogic forecasts that home prices will increase by 4.8% by the end of the year.

Ready to Take the Next Step?

Reach out to a Greenway Loan Officer for a consultation today to discuss and compare which option would be best for your specific needs. 732.832.2967. 

 


For the Week Ending March 15, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Wholesale prices barely rose in February, after falling for 3 straight months. This is a sign there is little inflation pressure in the economy, which is good for rates.
Retail sales edged up in January, but December was revised sharply lower. The increase was mainly due to discretionary spending and purchases of building materials.
Import prices rose in February by the most in 9 months. However, the trend in imported inflation remains weak, supportive of rates staying low.

 

New home sales declined to a 3-month low in January. The government shutdown and a battered stock market appear to have hurt sales.
Construction spending posted its biggest increase in 9 months. However, private residential projects dropped 0.3%, falling for the 6th straight month.
The latest design trends include bolder color schemes and brass finishes, particularly in the kitchen and bathroom.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


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