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What does the mortgage refinance boom mean for you?

When the Federal Reserve raised their rates from December 2015 to February of this year, mortgage rates dropped to their lowest in the last three years. The downward mortgage trend appears to be continuing, which means better news for homeowners.

What’s happening?  
The non-U.S. economic weakness has caused global investors to buy the safety of U.S. Treasure and mortgage bonds in 2016. As a result, loan rates (conforming, high-balance conforming, and jumbo) have decreased significantly due to investors selling risky stocks and buying safer bonds.

Reasons to Get Involved
. If you’re thinking of refinancing a loan, there has never been a better time.

Here’s why:

1. Cut down your payoff time: You could go from a 30-year loan to a 15-year loan which has lower rates and higher payments because you pay it off in half the time.
2. Cash out: A “cash-out” refinance allows you to access your home’s equity for other financial objectives, such as investing in your retirement, purchasing more real estate, or remodeling and improving your home.
3. Consolidate debt: Should you qualify, you can add non-housing debt (student loans, credit cards, auto loans) into a home refinance. Not only does it help to improve your credit score, but it converts that non-tax-deductible debt into tax-deductible debt.
4. Remove a second: If you had to take a second mortgage out on your house, but your home’s value has increased to the point where you now have 20 percent equity, a refinance can eliminate a second mortgage.

Interest rates can change quickly, so when they are low, considering making the move to refinance at a lower rate! Working with a level-headed real estate professional can ease the process home buying and selling, all while juggling rates and numbers.

When looking for your next home purchase or sale in San Diego, California, contact Jenn Blake Real Estate Group at Pacific Sotheby’s International Realty at 858-663-6788.