As rates decline, opportunities rise.
Is now the time to
refi or buy?
There is a ton of talk about interest rates these days. If you are interested in buying a new or existing home, understanding the rate environment and its impact on the real estate market can help you decide if it is the right time to buy. The recent reduction in mortgage rates combined with the possibility of future cuts suggest that we are in a declining rate environment. While everyone’s situation is unique to their own financial position, this rate environment may present some great opportunities for buyers as well as those looking to refinance their existing mortgage.
A move toward a buyer’s market
As mortgage rates go down borrowers can often secure financing terms with lower monthly payments, which is a positive for affordability. This results in more negotiating power for buyers prepared to move. In a declining rate environment, it is advantageous to get prequalified so you are ready to buy.
Lower rates may mean a larger home
In a lower rate environment buyers can stretch their dollars farther and may be able to afford a larger home. This opens them up to more options in the market and increases the likelihood that they can find the right home for their situation. Working with an experienced lender to explore the loan options available to you can help you determine how much home you can afford to buy.
That refinance may make more sense
As rates decline, there may be a point when it makes financial sense to refinance your existing mortgage in order receive a more favorable rate or payment terms. Refinancing at the right time can mean big savings over the life of your loan. Additionally, opting for a cash-out refinance can provide you with funds for things like home improvements and debt consolidation by borrowing against your equity.
Seize the rising opportunity of declining rates
The best way to understand whether the current rate environment is a good opportunity for you is to talk with an experienced mortgage lender. Our team stands ready to help you with access to a variety of lending programs, competitive rates and a streamlined application process.
Contact us to get the guidance you need.
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