Interest Rates Are Like A Rubber Band This Past Week

Dated: 01/07/2019

Views: 80

My lender friend referred to last week (and so far this week) as an interest rate rubber band.  I didn't catch the reference it first but the volatility with trade tariffs, the volatility with the stock market, and the volatility with what will happen next week over anything, has made the interest rates dip way down.  People we getting FHA loan interest rates as low as 4.25% last week.  They've bounced up a little since then, but if you have great credit, you are still below 4.75% with a few select lenders.  Sidenote:  If your lender can't get you 4.75% for an FHA loan, or under 5% for a conventional loan, I got a guy. :)

Truth is different lenders have different rates because they have their billing built into the loan.   Back before the crash in 2007, some lenders were nabbing up to 5 points on your loan, and rolling it in there.  5 points?  That would be about 15k charge to put you into a 300,000.00 home.  I see 1 point now, maybe 2 on a few lenders, but... what I see mostly is "I can get you a loan at 5.25%"  Well someone else says 5.125%.  "Fine, I will match it."  Really?  Is it that simple to match a rate?  If so, what are you not telling us?  That's why I've been saying for the last decade, "there's about 50 lenders in this valley that I don't trust, and about 5 that I do."

Don't get me wrong, they aren't all bad, but if you can walk across the street from one lender to the next and get 2 different rates for the exact credit score, the exact debt to income, the exact tax returns, what are you paying for?  Maybe a better lender experience?  Maybe not.  Nothing is guaranteed.  This low rates, are low right now, and I want to guarantee they won't drop again, but I can guarantee that eventually they will be much higher than we are at today.  This week, although not as good as last week, is probably the lowest we will see rates for a long time, so if you're on the fence, check with your lender and see how much you can afford.  And if the rate starts with a 5, give me a call and I will hook you up with one of my 5 trusted lenders.

This rubber band interest rate fiasco can easily bounce back up once a trade agreement with China is solidified.  1% in interest rate equals about 10% of your purchase power.  Meaning.... if you could afford a 300k home 2 weeks ago...that same payment could have gotten you about a 320K home.  Today, about a 310k home.  So we are better off than we were 2 weeks ago, but if you want your payment to be what you want your payment to be, and you aren't in love with the houses in your budget, this week we got to look at what you could have bought for a bump up in quality at the same  monthly payments.  

Think about it.  If you have been on the fence, take this week, get serious about your home search, and get serious about what your payment would be, and see what's truly out there.  I would love to help you get into your next home.  It's kinda what I do. ;)  If you aren't using myself or my team, I get it, just please get off the fence before your dream home is out of reach again.

Home search starts here.   You can email me at stephen@thecottongroup.net or text me at 480.725.3877  And if you want to speak one on one, I would be happy to hear from you.  623.236.5843

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