by SCOTT VOAK | Special Advertisement

What Opportunities Will Come With Lower Rates?

Interest rates are heading down again and are (at the writing) under 3.5% for a jumbo 30-year fixed mortgage (here’s hoping I didn’t just jinx it!). Most experts think we are in for a continued reduction over the next few years with some pretty smart people I know thinking we will get the 30-year rate under 3%. I see this creating opportunities for a lot of my clients.

The obvious opportunity that will present itself is for many families who are “trapped” in their current house with a lot of equity but without the ability to qualify for a larger loan. Lower rates will bump qualifying amounts and allow people to move up to larger homes to accommodate families that have grown in the last five years.

The second opportunity is the ability to refinance into a lower rate or a shorter term. Homeowners looking to stay in their homes will have the ability to refinance into a lower rate and payment (every 1% drop in rates will save you about $100 in monthly payment for every $100k borrowed). If you go with a 30-year loan, the payment could drop dramatically as you have likely paid down significant principle. This is a great option if you are facing increased bills due to paying for college. On the other hand, if you’re not looking for a lower payment, but just to get your home paid off faster, you may be able to roll your current mortgage into a 15-year fixed with only a small increase and cut years off your payment.


re_voakauthorseal Scott Voak, MBA – Broker

Managing Partner
CalDRE #: 01153157
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