Why Cash-Out Refinances Are Booming Right Now // Today’s Mortgage News – Growella


Yippie Kay-yay Mister Falcon! I'm Dan on your inside team at Growella, welcoming you to the party pal This is today's Mortgage Minute-and-a-Half

Fool me once shame on you Fool me twice, well you know the rest And so do homeowners who are hitting the cash out mortgage refinance hard New data from government-backed Freddie Mac shows cash out refis accounting for sixty-three percent of all refinances made last quarter, marking the highest percentage of cash-out refis since 2008, not coincidentally, one year into last decade's housing market downtown This year's resurgence is the result of low mortgage rates and rising values of homes, but it's the safety angle that's most interesting

Cash-out refinances unlock a homeowner's home equity, converting an illiquid asset into cash which can be used for whatever — to pay down credit cards, to make college tuition payments, to finance home improvements Also, to do a re-balance on your portfolio of investments Remember than home equity is an asset and the typical refinancing household has witnessed a sixteen percent increase in home value since the date of last mortgage, and that's created a massive asset class overweight for a lot of US homeowners

Last decade, exposure like that made for some long-term damage This decade, homeowners are playing it differently So if your home is up big in value, talk to your lender at least discuss your cash out options I got a fever and the only prescription is more mortgage news Today's rates for conforming loans, FHA loans, VA loans and USDA are all trending higher, raising monthly payments for active buyers of homes

And, what are today's mortgage rates? That depends Your mortgage rate is based on your loan size, your credit score, and where you live How you pay your closing costs matters, too Loans with points typically come with lower rates, but paying points may not be good for your sitch So talk to your lender about your options and make the choice that;s best for you

The white zone is for loading and unloading There are no mortgage rates in the red zone Today's rates for conforming loans, FHA loans, VA loans and USDA are all trending lower, lowering monthly payments for active buyers of homes And, just how low are today's mortgage rates? That depends Your mortgage rate is based on your loan size, your credit score, and where you live

How you pay your closing costs matters, too Loans with points typically come with lower rates, but paying points may not be good for your sitch So talk to your lender about your options and make the choice that;s best for you The more things change, the more they stay the same Except in mortgages

Things never stay the same Everything changes Take last year Government-backed Fannie Mae made sixty-eight changes in its official mortgage rulebook Sixty-eight

That's more than one per week and changes like that change the way that mortgage loans are approved In-between jobs and buying a home? Your lender can do that mortgage now Carrying debt from student loans? Your lender can exclude some of them now Planning to make a small down payment? Your lender has more options for you now These are all things that are new, and it's one of the reasons why you can't rely on random webpages or your Aunt Jenny in real estate to tell you whether or not you're eligible to get a loan

You got to talk with a lender because everything changes and, right now, mortgage rules are as loose as they've been in years Talk with a lender It's an excellent time to see what you can do Growella does mortgage news three times weekly, Share us with your office, leave a like, leave a comment, and remember that a person should not believe in an ism A person should believe in himself

Ferris Bueller said that [WAIT] But he's sick My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Ferris pass out at 31 Flavors last night I guess it's pretty serious [THANK YOU DAN] No problem whatsoever

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