These are the highlights from the interview on Friday, May 7th with Carson Wright, a mortgage lender.
Equity is through the roof right now. 🚀 If you have a high-interest mortgage and either shifting it into another house 🏡 (upsizing/downsizing) & selling your existing home OR refinancing to get a better rate. 📉
If your mortgage is anything over 5%, make the call, get a refinance. If you're sitting anywhere in the 4s, start exploring. 🧭 You always want to get at least a percentage point lower, in refinance that's the ultimate goal. If you get a little bit less and you're able to remove mortgage insurance, which is there on every loan (drops off once you have enough equity). Always check it out.
As long as you're closing on your current home and the sell of that prior to the purchase of your new one, you can easily transition those funds directly to the next title company where you don't have to do anything. You just cashed in a hundred thousand dollars from the sale of your home and now you use those same funds for the purchase of your new one, putting down a massive down payment or whatever you guys wanna do. 💰
Plenty of options in this market.
What about jumbo loans? Those are a little bit higher interest rates. What would you say from that perspective as far as if you're above X…?
Correct, and so beautiful words there, jumbo loans, just being a higher risk, the non-standard loans there are going to be higher interest rates. … once over 6% I would say explore it.
It's never a bad thing to look into. If you haven't looked into it already, explore it, ask the questions, see if it's possible.
The first question asked is “what's the interest rate” or “what's my monthly payment gonna be on this home.” The home matters, your interest rate, & your credit score matters because if you have 20% equity in your home, you can drop that mortgage insurance using a conventional loan. FHA will have that there for the life of the loan but you can remove that. And that is often times the biggest saving point on … And especially in this market people's home values are going through the roof and you're getting that 20% equity so much quicker. Your private mortgage insurance is the kicker and that's what drops off. 📉 And I'm telling you that along with a better interest rate and that's the nice little gap where you don't have to quite get the 1% of a better interest rate. If you can just get it better anyway and remove that mortgage insurance, it's a no-brainer.
Regardless if you're over 5% or even at 4%, you're gonna want to start exploring and just see what's there. It's an easy thing to say if you're an over 5% go refinance but if you're in the 4s or even high 3s and it's never a bad thing to look into.
We just got a jobs report 📝 and it's usually a big indicator on the economy and everything that didn't quite come in as high as we thought. Meaning these interest rates were gonna rise with all the new job openings. 📈 But because that number wasn't quite what they expected, interest rates are still good. 📉 We were expecting a dip today but everything is still holding. The thing that we monitor in the mortgage world is that 30-year mortgage bond and the 10-year Treasury bond. All of those matters play a factor in your interest rates that you're seeing on the consumer side.
So as we're monitoring this, it is always a roller coaster. 🎢 And right now this roller coaster is a blast, 🚀 hop on if you can. This is why we're experiencing, with interest rates being so low … at these levels, everybody wants to buy. That's why every single person is experiencing these massive competitions with every home because everybody wants to hop in on these rates.
Several people who want to buy a new home but are in their existing home are scared to move forward because of the multiple offers and bidding wars that everybody is going through right now. I would encourage people if they want to move up into a bigger home 🏡 and you have equity 💰 in your current home, let's start exploring, let's get out and see what we can find. We'll start right away with Carson and find out what we can get pre-approved for. 🧾 The good news is to sell a property at this time, super easy, especially once you find a house to buy.
You can have your home under contract 📝 and we will plan out the process. We get a document from you, listing their home, 🏡 that shows what the proceeds 💰 are and we're gonna use that for the next purchase of the home.🏡 We do it all the time. It's nothing scary. Oftentimes people get overwhelmed with “oh, I'm selling one home and instantly going to another.” That seems like a lot but not for us in this business.
***Carson Wright, NMLS 1693440***
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