Mortgage interest rates are back at attractive level ranging in the mid-5s for a 30 year fixed with only one point (high5’s with zero points). Our last refinance opportunity was an exercise in frustration for many. Home owners were contacting their loan originators with "what’s the rate now?" and calling later that day or next with the same question. Mortgage interest rates are a moving target. In our present market, I’m receiving on average 2-3 rate sheets per day. Mortgage interest rates can move just as quickly up as they have down. In addition, there are fewer and fewer loan originators remaining in the market to help those who are ready to refinance.
If you are serious about refinancing, I suggest the following:
- Contact your local Mortgage Professional (sorry, I can only help those who have property in the State of Washington) to find out what the current rates are and to see if refinancing makes sense for you.
- Have a recent mortgage statement or your Note to provide detailed information.
- Complete a loan application and be prepared to have your credit report ran (interest rates are very credit score sensitive).
- Have your most recent paystubs and last W2 ready. Your LO may also want your last bank statements and copies of your drivers license.
Refinances take approximately 30 days in this market, assuming there are no issues with your appraisal (a second appraisal or additional comps may cause extra time). Make sure that your Mortgage Professional is allowing plenty of time for your lock in order to avoid needing an extension.
If rates stay low and enough people take advantage and jump on the refi bandwagon, be prepared for the process to take longer than it seems it should. It’s a simple fact in this market there are fewer people doing the same amount of work. Every aspect of the transaction may become bogged down.
If you have a mortgage with a higher rate with a loan amount of $522,100 – $567,500, you may really want to act soon with your refinance as conforming jumbo and FHA jumbo loan limits are being reduced at the first of the year to $522,100.
Have a little patience, cooperate with your Mortgage Professional and get your lower mortgage interest rate.