A very popular mantra right now is: "marry the house, date the rate". What does this mean?

While rates are high, it is causing there to be less buyer demand / competition. Enough buyers are hitting the "pause" button until rates come down.

As soon as rates do go down, we predict competition to rise steeply, and so will house prices.

If you can afford to buy a house now, if and when rates go down, you can choose to refinance at that time. 

So, if you do end up wanting to do a refinance, how much does it cost, and how does it work?

To put it simply, it is the same processing fee (at this time we're charging $1,499.00), and a new title policy from a local title company, they usually charge $825. That's usually it - we often do not need clients to pay for / order an appraisal.

Even better, most clients don't bring ANY money to closing. You can use your equity you have to cover the closing costs.

Also, what if you refinance and then rates go down again? What then?

Well, for clients that are nervous about that, every time you apply for a mortgage refinance, you can choose a lower rate, or you can choose a rate slightly higher than the new lower rate, but then I can give a lender credit to cover the closing costs. I give you up front money in exchange for a higher interest rate. You're still refinancing for a lower rate than you currently have, but by choosing this route, it's a "free" mortgage, since the loan itself is paying for the closing costs! 

Quick example, let's say you take out a mortgage today for 6.75%. In 12 months, the "low rate" option is 5.75%. Or, you could do a "no closing cost" option for 5.99%. If you'd choose the 5.99% option, you'd still be saving about $150/month without paying any "cost" for it.

Every client is offered a refinance comparison spreadsheet that helps illustrate how much you'd save over a 3-5 year window (including any applicable closing costs) to make sure it is worthwhile for your family and your finances!

Questions about this? Don't hesitate to text me at 414-488-0438.