Last Chance to Refi Under 4%?

This article comes courtesy of  Bruce Becker from SWBC. Many thanks for sharing this with us!


Last Chance to Refi Under 4%?Bruce Becker

Bruce Becker, SWBC

Many of you have refinanced with me or another lender, sometimes twice, since the Great Recession began. And you’re reaping the rewards. However, just as many have not, waiting for rates to “bottom out” or believing that it’s not worth doing again for whatever reason.


If your current interest rate is 4.75% or higher, this is most certainly your last chance….and here’s why:


  • The Great Truth – As the economy improves (which it is) the stock market goes up (which it is) and people move their money out of cash and bonds thus increasing the interest rates on those bonds so as to compete (which is happening right now). It may be happening slowly, in fits and spurts, but the economy’s definitely on the rise and so are home mortgage rates.


  • A funny thing is happening to the United States housing market. It is getting better at an accelerating rate. The inventory of houses for sale — both new and used — is as low as it has been in decades. Home prices are rising in most markets, especially in the Houston area. Sales have picked up, though they are still low by historical standards. The Point… housing improves so does consumer spending. As spending improves, so does the economy. As the economy improves (the Great Truth again) mortgage rates rise!


  • 30 year rates           December 2012       3.50%         January 2013          3.75%
  • 15 year rates           December 2012       2.875%        January 2013          3.25%


BTW, all your closing costs can still be paid for by the bank adding $0 to your current loan balance and $0 at closing.

So, if you’re sitting on the fence, look at it again and see if refinancing works for you… even if you’ve done so in the past year or two.

About Danny Sanchez

Joining Rianne's award-winning team after a successful career as a Program and Operations Manager for a global outsourcing firm (with Fortune 100 companies as his primary clients), Danny has seen The Woodlands grow to what it has become today since 2001. An advocate for innovation and perfecting the Best Possible Real Estate experience, he understands very well that clients always come first. In his own words, "success looks like clients feel that they don't have any needs - because you've more than anticipated them."