I’m here with a quick update on the current state of mortgage interest rates. Here’s what you need to know.
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Ron Smith from Flagstar Mortgage joins me today as stories of low interest rates dominate the news. We’ve got a quick update for you today on where rates are now and where they might be headed in the future.
Last week, interest rates dropped to all-time lows. Ron has been locking in rates for homebuyers near 2%, which is unbelievable. He’s been in the industry for over 30 years and has never seen rates this low. About 90% of Americans who already have a mortgage can benefit from refinancing right now, too.
Let’s say you locked in a 4% rate a few years ago. If you refinanced now to 3% or lower, in just a few years you’d recover that difference and recuperate the costs. Then you’ll be able to continue saving that money each month for the life of your loan. It doesn’t always make sense, but when it does, you can save a lot of money and consolidate other debt into a new mortgage.
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You can even consolidate other debt into your current mortgage.
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You can even consolidate other debt into your current mortgage.
There is a danger in this, though. If you do get rid of your credit card debt that has a 17% rate and roll it into a 3% mortgage, it makes sense on paper. However, the hard part is keeping the credit card debt from going back up again. When that happens, what have you really gained?
The main purpose of consolidating debt is to get it paid off. A client that Ron is working with right now will have to add $1,000 to his mortgage payment every month, but it’s part of a plan; he’ll be really happy 10 years from now because he’s paying off that debt and building wealth.
If you need to get a hold of Ron for any questions about refinancing or mortgages in general, give him a call at 541 284 8036.
If you have any other real estate-related questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you.
