Frozen on the Refinance Fence
A funny thing happens to many refinancing home loan shoppers once they begin their journey to a new and improved mortgage. They will gather loads of quotes, study their good faith estimates, read the latest news on mortgage rate trends, then freeze when it comes time to pull the trigger and submit their loan application.
This “freezing” reaction is actually quite understandable, especially for those that are gathering multiple quotes and really trying to study the mortgage market. Sometimes, the more you know about a subject, the more difficult it is to react.
What’s more, you can talk to 5 different lenders and receive 5 different quotes, including significant differences for rates and fees. Now comes the different advice and information relayed by these same mortgage lenders and it’s enough to put a twinge of doubt into the borrower’s mind to say the least. Who is blowing smoke and who has the real deal?
Waiting for rates to drop further is another reason that homeowners put a freeze on their refinancing plans, even when they have a deal in-hand that meets their initial goals for their new mortgage. CNBC or CNN financial experts say that 30 year fixed rates will go down to 4.0 percent, so people wait. Unfortunately, they don’t tell you these same experts predicted rates to go up to 8.0 percent last fall, right before mortgage rates dropped to 5.0 percent.
It is also human nature to want to keep things as they are. Even though someone may be shopping for a better mortgage deal while interest rates are so low, subconsciously, it is much easier to maintain the status quo.
The truth of the matter is, that no one can predict with any degree of accuracy where mortgage rates will go. If you try to time the mortgage rate market bottom, odds are that you will end up either not refinancing at all, or panic into a higher rate than current if rates suddenly go up. It is good advice to treat refinancing decisions just like the most successful traders in the stock markets, as they do not predict price movements, but only react when conditions are in their favor.
Dealing with a lender that holds the third party designation as an “Upfront Lender” will help you to end your insecurity as to whether your quoted rates and fees will be the same by the time you close your loan. Your Upfront Lender will guarantee most if not all fees and also guarantee your rate lock so that you don’t have to worry about getting the rug pulled out from under you.
I hope this helps those considering a refinance loan now, so that they don’t freeze when they have a deal-in-hand that will bring a significant financial benefit to them. Most people find that once they make their decision, calm and confidence soon follows.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
This “freezing” reaction is actually quite understandable, especially for those that are gathering multiple quotes and really trying to study the mortgage market. Sometimes, the more you know about a subject, the more difficult it is to react.
What’s more, you can talk to 5 different lenders and receive 5 different quotes, including significant differences for rates and fees. Now comes the different advice and information relayed by these same mortgage lenders and it’s enough to put a twinge of doubt into the borrower’s mind to say the least. Who is blowing smoke and who has the real deal?
Waiting for rates to drop further is another reason that homeowners put a freeze on their refinancing plans, even when they have a deal in-hand that meets their initial goals for their new mortgage. CNBC or CNN financial experts say that 30 year fixed rates will go down to 4.0 percent, so people wait. Unfortunately, they don’t tell you these same experts predicted rates to go up to 8.0 percent last fall, right before mortgage rates dropped to 5.0 percent.
It is also human nature to want to keep things as they are. Even though someone may be shopping for a better mortgage deal while interest rates are so low, subconsciously, it is much easier to maintain the status quo.
The truth of the matter is, that no one can predict with any degree of accuracy where mortgage rates will go. If you try to time the mortgage rate market bottom, odds are that you will end up either not refinancing at all, or panic into a higher rate than current if rates suddenly go up. It is good advice to treat refinancing decisions just like the most successful traders in the stock markets, as they do not predict price movements, but only react when conditions are in their favor.
Dealing with a lender that holds the third party designation as an “Upfront Lender” will help you to end your insecurity as to whether your quoted rates and fees will be the same by the time you close your loan. Your Upfront Lender will guarantee most if not all fees and also guarantee your rate lock so that you don’t have to worry about getting the rug pulled out from under you.
I hope this helps those considering a refinance loan now, so that they don’t freeze when they have a deal-in-hand that will bring a significant financial benefit to them. Most people find that once they make their decision, calm and confidence soon follows.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: business, economy, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
11:24 AM
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