I sat next to a couple in Starbuck's today who were trying to set up a refinance on their existing loan.
The recent declines in interest rates on 30-year, fixed-rate mortgages have resulted in many homeowners seeking to refinance. Due to the large number of requests to refinance, some homeowners are experiencing difficulty in trying to reach their lender. According to Fannie Mae’s chief economist, it may take as long as three months for the mortgage industry to start working at full capacity.
To ensure they receive the best refinancing deal possible, consumers should be patient and follow a few tips from industry experts:
First, consumers should recognize there is opportunity for significant savings by refinancing. Rates currently are hovering around 4.6 percent, but historically are around 8 percent.
Second, homeowners should be aware that Fannie Mae and Freddie Mac have increased their fees, so borrowers could be paying extra fees of 1 percent or more of the total loan amount.
To qualify for the best rates, most borrowers must have at least 20 percent equity in their homes and FICO scores of 720 or higher.
...and above all, work with a recommended loan agent who knows the market.
2 comments:
Are the 4.6% for conforming jumbo (up to 729k)?
Sue, our in-house lender told ud that rates rose a little in the last few days. Those rates were for conforming loans, though.
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