I don’t expect rates to drop in a significant way unless there’s a recession. In that scenario I’d expect home prices to decline moderately as well. So let’s way we get a recession and rates drop 100 basis points. Home prices drop 10-15%. Do you have enough entity so that you still fall into a conforming loan to get the lowest rates. I.e. is your LTV still < 80% if home pries fall moderately. If yes might as well wait since we're somewhat overdue for an economic downturn. If not then the decision gets more complicated.
OP.. you got some really bad advice if you were told not to refi out of 5,25%
I don’t know why you think it made no sense to refi 6 months ago,’
Assuming that you qualify, when you can get a no cost loan and can save just .25%, depending on your loan amount, it can save you $25,000-50,000 or more over the life of your loan.
Had you refinanced 6 months ago into the 4’s, you could possibly refinance again into the high 3’s now at no cost.
It’s sad that so many people do not understand the benefits of refinancing and as a result are wasting tens of thousands of dollars by paying too much in interest.
No cost loan means you get a rate that costs you nothing in fees & closing costs. Zero, Zip. Nada,
There is no one rate that fits everyone as it depends on credit score, equity & property type, but if you want a free analysis of what your options are I can provide that,
As a mortgage broker, I’ve worked with dozens of Piggington’s readers over the years.
Wondering if rates will go lower is a good question,
Anyone who can predict interest rates accurately can make a fortune trading bonds on Wall Street.
You’ve already wasted thousands of dollars @ 5.25%
Some people get lucky and hit the bottom but others miss out by waiting and waiting and waiting and then rates go up and they never do anything and end up wasting $100,000 or more because of their greed. It happens over and over again.
My advice is honest & free and I offer special pricing to Piggington’s readers
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