The first half of 2021 has rates remaining stable in the mid to high 2’s, and housing prices still rose due to low supply and high demand. The economy softened, inflation talk is common, businesses are showing signs of recovery from the impact of the pandemic.
The financial markets going forward hold a lot of unknowns. COVID infections are rising once again and the stock market is showing some instability with the uncertainty of the pandemic both domestically and worldwide.
Home Financing Savings with Market Uncertainty
Due to the uncertainty of the pandemic, home buyers and homeowners looking to refinance have the opportunity to save even more money. Interest rates have lowered to a near all time low! Also, the 0.5% refinance fee imposed last year by Fannie Mae and Freddie Mac has now been eliminated! The fee removal alone on a $500,000 loan balance is $2500 savings.
As of today, the 15 year rate is near 2% with no points, the 30 year rate is near 2.5% with no points. Rates may vary depending on qualifications.
“…the 0.5% refinance fee imposed last year by Fannie Mae and Freddie Mac has now been eliminated! The fee removal alone on a $500,000 loan balance is $2500 savings.”
Financing Application and Closing Updates
I can close most refinance and purchase transactions in 15 to 21 days!
The new loan application is a bit more cumbersome going from 5 pages to 10 or more pages, however, documentation requirements for W-2 borrowers have been reduced.
Appraisal waivers (a $500 to $600 closing cost savings) are at an all-time high, meaning for many transactions an appraisal is not needed. It remains a good time to purchase, refinance, remodel, or consolidate debt (including paying off higher interest rate debt).