Should you refinance your mortgage now or wait for lower interest rates? Fannie Mae just said that the average interest rate was at 3.2% but likely headed lower. In this video, I discuss that along with addressing the question or whether you should refinance or ask your lender for mortgage forbearance.
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Interest rates are heading even lower, according to the Fannie Mae forecast. The average rate probably will be 3.2% in the second quarter, down from 3.5% in the first quarter, and drop for the rest of the year.
In the third quarter, it probably will be 3.1% and in the fourth quarter, it probably will average 3%. In 2021’s first quarter, the average probably will dip to 2.9%, Fannie Mae said.
Should you refinance your home now or wait?
I believe it all depends on your goals but if you can take advantage of current interest rates and it makes sense to you then you should take advantage because you don’t know what the future holds with regards to interest rates, your employment or even home values. Also, make sure that your savings per month outweigh the costs to refinance.
UMW now offering mortgage interest rates around 2.5%
“By offering conventional 30-year fixed rates in the 2.5 to 2.99% range, UWM said that it “intends to increase demand for homes and spur a strong purchase season despite the economic impacts of COVID-19 across the country.”
Should you refinance or take advantage of mortgage forbearance?
I believe you should only take advantage of mortgage forbearance if you absolutely need it so if you’re in a position to continue making your mortgage payments then I would not go that route. In fact, if you can refinance and lower your interest rate and monthly payment that would be a way better solution that going through mortgage forbearance.
Mortgage forbearance will likely impact your credit score as well as your ability to purchase or refinance a loan in the future.
If you have additional questions about your mortgage, loans, forbearance or refinancing, please comment below or contact me directly.
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