This Week’s Highlights:
- An Amazing Time for Interest Rates
- Mortgages: a Tool for Your Life Goals
- A New Criteria for Jumbo Loans
An Amazing Time for Interest Rates
It’s no secret that the market has been lucky with low-interest rates for an extended period of time. One of the main reasons the rates continue to stay low may be in relation to notes that came out of the most recent Federal Reserve meeting, where it was suggested that the economic recovery might not be going quite as well as was originally thought.
Every morning, Accunet Mortgage takes a look at what the 10-year US Treasury is doing, because it’s a good bellwether for what interest rates are going to do throughout the rest of the world. This week, the 10-year Treasury dipped as low as 1.25%. This essentially means that Accunet could deliver 2.875% with an APR of 2.9% on a 30 year fixed rate for a $300,000 loan, all with just $995 in costs. Better yet, Accunet never charges unnecessary “junk” fees, like origination, underwriting, or processing fees.
That said, the time to act is now. The economy’s recovery may be going slower than originally anticipated, but it still is steadily recovering, and these interest rates will change with it. With a Rock-Solid Pre-Approval from Accunet, you’ll be able to lock in these historically low rates.
Mortgages: a Tool for Your Life Goals
After Accunet Mortgage helped a couple refinance in 2019, they were able to get into a 25 year fixed rate mortgage because they want a custom amortization at 3.6 to 5%. Now two years later, the couple is coming up on 23 years left in their mortgage and were considering looking for a new home. But whether or not they decided to purchase, they were interested in getting a lower rate to capitalize on 2021’s current economy.
This couple had already owned the home even before working with Accunet, and in the middle of the COVID lockdown, they realized that they liked their home and weren’t ready to sell. Instead, they mentioned that they had been considering the idea of remodeling their two bathrooms in the house, though they had no idea yet how much it would cost. We were able to give them several options for how to proceed. The option that they chose was a cash-out mortgage refinance that would only raise their loan amount by $4 per month while putting $50,000 back in their pockets to spend on whatever they wanted.
This is the great thing about mortgages and working with lenders like Accunet Mortgage. Mortgages can be utilized and reformed to help you live your life the way you want to, and lenders like Accunet can present the options to help you get there. It’s really all about what your personal financial goals are.
For example, if you want to be debt-free and have no mortgage at all, you might want to consider the 10 to 15 year fixed. Accunet will never give our clients just one option. Instead, we will give you all of the best options and help you figure out which one is truly best for you and your family.
Want to go with a cash-out refinance, but you’re not sure how much money you’ll want back? We can adjust your cash out and loan amounts up until a week before closing in most cases. You can even change your mind to a no cash-out option, or walk back your decision for a set amount of days.
It’s important to remember that many people will wait for a life event to happen in the next couple of months but don’t know how much money they’ll need before refinancing. Instead of acting, they will wait until they have a solid number. That’s not the right play during these times because rates may be worse a month or two from now. Accunet can secure rates for up to 75 days in most instances, which allows two and a half months of time to figure out what exact game plan you want, while still securing these low rates that we happen to have right now.
A New Criteria for Jumbo Loans
Criteria were updated for jumbo loans recently, and the news is good! But what are jumbo loans? First, it’s important to understand that the maximum loan amount that Fannie Mae and Freddie Mac will purchase on a single-family home is $548,250. Anything borrowed above that would then be classified as a jumbo loan, and these require 10% down. This past week changed that though when a bank that Accunet works with released new criteria that cut that down payment to 5% for loans up to $650,000.
This is a real game-changer because it mimics the down payment that Freddie Mac and Frannie Mae would require repeat home buyers to pay. Even if a potential buyer knows they can afford a home and the loan they took out for it, it isn’t always easy putting liquid assets together for the down payment.
In this current market where property values are constantly rising and potential buyers are feeling priced out, this news is truly a silver lining. And while jumbo loans have slightly higher rates, it allows the buyer to tap into more borrowing power without having to bring more money to the table. This is another instance where the rules are changing all the time, and Accunet Mortgage stays on top of it to find the best ways to help you save the most money.
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