sgip
Well-known member
A few words to the wise for anyone watching rates fall and wondering what the best path forward is:
1) With low rates comes a "rush to the exit" - meaning processing time will stretch from 60 days to 90 days. Plan accordingly.
2) Trees don't grow to the sky and mortgage rates don't fall to zero. At any moment I'd anticipate a .25% in rate or .50 in fee snap back rally. Should someone from the Royal House of Saudi come out and say they'll begin to pump less oil, or if Greece rejects their Anti-Euro candidates, rates will rise pretty fast. Take what you can because timing the market is very, very difficult - even for professionals.
3) If you closed a purchase or refi within the past 90 days, some lenders can't refi your loan. Ask your loan officer if "seasoning is an issue" and always get the answer in writing.
4) Regretfully, your escrow, title report, and appraisal from your last deal can't be used - even if your refi is through the same lender. I get that question often and may as well burp up the answer ahead of it being asked.
5) Will the Fed raise rates mid 2015? Perhaps, but it often has zero impact on mortgages. Don't make refinance or purchase loan lock plans in relation to a possible Fed rate increase.
1) With low rates comes a "rush to the exit" - meaning processing time will stretch from 60 days to 90 days. Plan accordingly.
2) Trees don't grow to the sky and mortgage rates don't fall to zero. At any moment I'd anticipate a .25% in rate or .50 in fee snap back rally. Should someone from the Royal House of Saudi come out and say they'll begin to pump less oil, or if Greece rejects their Anti-Euro candidates, rates will rise pretty fast. Take what you can because timing the market is very, very difficult - even for professionals.
3) If you closed a purchase or refi within the past 90 days, some lenders can't refi your loan. Ask your loan officer if "seasoning is an issue" and always get the answer in writing.
4) Regretfully, your escrow, title report, and appraisal from your last deal can't be used - even if your refi is through the same lender. I get that question often and may as well burp up the answer ahead of it being asked.
5) Will the Fed raise rates mid 2015? Perhaps, but it often has zero impact on mortgages. Don't make refinance or purchase loan lock plans in relation to a possible Fed rate increase.
