Brian and David Wickert give you the latest industry news, and give you advice to help turn a house into a home.
This week on the Accunet Radio Show:
Brian and David Wickert discuss this week’s Freddie Mac survey, compare Accunet to other lenders, and discuss why this is the perfect market for refinancing your home.
This week’s highlights
- According to Freddie Mac’s latest weekly survey, mortgage demand reached a 3-year high this week.
- Rates aren’t low right now because of the federal reserve rate cut — that’s just a coincidence. They’re low because investors around the world are fearing a global recession due to the trade war between America and China.
- Did you know Accunet doesn’t just serve Wisconsin? Accunet is a certified mortgage lender in Minnesota, Wisconsin, Illinois and Florida.
Mortgage Industry Update
This week, Freddie Mac released their Tuesday survey showing rates continue to sit at near-record lows.
The decline in mortgage rates over the last month is causing a spike in refinance activity, as homeowners currently have $2T worth of mortgage loans that could benefit from refinancing. On top of that, purchase demands are up — making a great market for refinancing and selling a home.
The question isn’t whether you should; the question is who you should ask for help doing it.
Accunet vs. The Other Guys
How does Accunet hold up against competitors? Here’s a handy guide to the “other guy’s” offer on a $200,000 refinance loan vs. Accunet’s offer on the same deal
- Chase: 3.875% with $2,346 in fees
- Accunet: 3.875% with $778 in fees ($1,568 in savings)
- BMO Harris: 3.75% on a home in DuPage County, IL with $2,245 in fees
- Accunet: 3.625% on a home in DuPage County, IL with $800 in fees ($1,445 in savings)
- Quicken Loans: 4.25% (on a $247,000 loan balance) with 4.86% APR and $3,774 in fees
- Accunet: 3.625% (on a $247,000 loan balance) with 4.03% APR and $674 in fees ($3,100 in savings)
Will mortgage rates stay low?
This week, the Wall Street Journal released an article speculating over whether or not we should trust mortgage rates to stay low. The answer? No, we shouldn’t.
It’s human nature to say, “Well, if rates are low today, they’ll probably be low tomorrow.” We get it. But this just isn’t true. If you’re waiting for rates to drop lower before making your move, we strongly advise you not to; the speculatively low rates are already baked into today’s rate cake.
Trust us: Take the bird in the hand. Tomorrow is not necessarily going to have the same rates as today, so lock in the savings before it’s too late.
Client story: Is refinancing worth it?
Refinancing can be a hassle; we get it. But if you’re a good candidate for it, is it worth it? In a word: Yes. Here’s a quick story about a customer we’re working with to save almost $20,000 with their refinance:
This week, we had a past customer reach out to us regarding a possible refinance on their condo, which they purchased in 2016. We did the math, looking specifically at giving them a 25-year loan at 3.625% instead of their current 27-year loan at 3.875%, dropping their rate by a 0.25% total. There’s an age-old bromide for refinancing which says refinances aren’t worth it unless you lower your rate by 1% — But is it true? Well, you tell us:
With the 0.25% rate drop Accunet is offering, our customers are looking at a potential savings of $18,524 in interest, plus paying off their mortgage two years earlier than expected. That’s a slick deal, and one you wouldn’t usually find outside today’s market.
Thinking of refinancing? Contact Accunet to start your refinance today.
What is an Accessory Dwelling Unit (ADU)?
An accessory dwelling unit is a self-contained living space within a single-family home. Most often, this is used when homeowners aren’t using all of the space available to them, and opt to transform some of that space into supplemental rental income.
Recently, one of our former employees moved down to Florida, where they’re looking to buy a single-family home in the Palm Beach area. They found the perfect home — there’s just one problem:
The owners sealed off both the master bedroom and garage from the rest of the home and turned them into accessory dwelling units with private entrances. Each has a kitchenette, a shower, and a toilet, and has been rented out in the past. Under local code, this is a no-no. Despite the popularity of ADUs, you’re only allowed to have one ADU per property in the Palm Beach area.
Since this is an issue with local code, that means Fannie Mae is less likely to lend on the property. So far, we see a few options moving forward:
- The owners re-convert one (or both) ADUs to the main house area
- The buyers explore other means of borrowing
We’ll be sure to update you in the coming weeks on how this deal is proceeding.[elementor-template id=”10109″]
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