The Bottom IS In The Past But Interest Rates Are STILL Great

Q: From our recent conversations, it seems that interest rates have no reason to go a lot lower and every time it looks like they will, they bounce. It must be frustrating to announce a new drop and then have it melt away a few days later. What is the most consistent advice you can give to those of us who still need to use refinances to pull cash out to pay other debts or do repairs or remodeling?

A: I hate it as much as anyone when rates start dropping and then bounce! I can only report on what is available NOW, which is why I encourage everyone to get us their paperwork so that they can be in a good position to

LOCK IN A LOW RATE, when they want to make their move. Rates will continue to have lower days and higher days even as they eventually enter a solid upward trend, which is really NOT YET.

While it is evident that we have seen the bottom during this “covid pandemic recession” and may not see it again for awhile, RATES ARE STILL AT OR NEAR HISTORIC LOWS, MAKING TODAY A GOOD TIME TO LOCK IN A GREAT RATE. Those who can benefit from today’s rates fill along list, in spite of the fact that the lowest rates in history are in the rear-view mirror. Anyone with a rate higher than 3.25%, anyone with mortgage insurance, anyone with a loan they have had for 5 or more years can benefit from a refinance if they are seeking a lower payment. AND…anyone who want or needs to pull cash-out to repair or remodel their home or consolidate other higher interest debt and/or lines of credit can benefit from refinancing NOW.

ALMOST ANYONE kicking themselves for

waiting too long to lock in a historically low rate can still benefit from today’s rates if they are seeking lower payments or cash out for any reason. Waiting is not advised. Call me at 831-818-7700 or send me an email at jchubb1@gmail.com to get specific guidance for their individual situation and needs.

Q: Does it make sense to refinance my $350,000.00 loan at 4.375% on a rental? If the value is over one million, is it possible to also pull some cash out?

A: Yes, it actually would make sense for you to refinance your rental property at this time. You can lower your interest rate by approximately 1% OR MORE, which should save in the area of $250 to $300 per month OR MORE. You can also pull cash out and MAINTAIN THE SAME PAYMENT OR A LOWER PAYMENT, depending on how much cash you want to pull out. My advice is to CALL NOW OR SOON

and not wait another few weeks or months.

Q: Why do we need an appraisal? Our value has gone way up and we have always made our payments on time, so it seems silly to ask us to

pay for a needless item such as an appraisal.

A: The Fannie/Freddie underwriting system guidelines often waive the need for an appraisal when the borrower and property statistics warrant it in their “artificially intelligent” eyes. When an appraisal waiver is not issued the

“AI” does not have a means of discussion, so it “is what it is” when required.

Jim Chubb is a licensed real estate broker and has been the owner/broker of Pacific Inland Financial Inc. Since 1986. He has been on Mortgage Originator Magazine’s Top 200 list since 2001. Send questions to: Jim at jchubb1@gmail.com.