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-- potential buyers and homeowners looking to refinance are now looking at some of the lowest mortgage rates in history in fact they are the look it's rates.
In history mortgage buyer Freddie Mac is reporting the average rate.
And a thirty year fixed loan.
Is down to three point 67.
Percent you see the fifteen year -- in your screen it's under 3% the question is now.
How much lower will it go.
And really take advantage of these rates with your bank your refinancing all that's in -- -- with us today real estate analysts and CEO of the Babb group nice to have you back with a standing.
Didn't back let's talk about the first part of that question you know.
The -- 62%.
Thirty year fixed mortgage is do you think it -- actually go that low.
And I've I don't think it well I think we're probably seeing pretty close to the bottom of the barrel on this is historically the lowest it's been and it's it's largely largely driven by consumer confidence and and in -- in investor confidence in where they're putting their money and so right now.
As there's some instability in the market it's actually helping the mortgage rates -- as confidence grows in the market and -- stabilizes we'll see the rates -- to go up a bit.
Outrage an even if they go up a little bit they're still at historic -- even if -- around 4% raises a lot of folks think enough.
If I can jump into the market now that's great maybe I should consider refinancing who -- low rates really helping your experience.
And it may help new home buyers primarily in first time home buyers even more.
Refinance rates are actually a little bit higher than purchase rates and it -- and a half a percent or or a little bit more.
And so for example if -- to buy a thirty year fixed home.
Thirty years at thirty year fixed mortgage on a 200000 dollar home you're looking at about 800 dollars a month.
And this applies to people -- have a credits for about 6080 they have 20% down -- been in a job for two years.
They -- -- a bankruptcy but not in the last ten years.
They can have no short sales in the last three to five no foreclosures in five to seven and -- -- here's -- kicker generally these loans only go up to 4171000.
Dollars above that.
You're looking at a Jumbo or non conforming loan which does have higher rates but they are available today and while it is so you know what -- -- five Americans are under water.
When it comes their mortgage meaning that.
-- mortgages at a higher amount than -- their home is currently worth right now that doesn't mean they're getting can gather holidays means that they bought at a time in the market when the market was different.
So for folks that are unsure whether or not they're under water if their home -- fallen and I you what should be do about refinancing right now.
The pressing need to do is get an appraisal and they can do at a number of ways they can go to to a bank and work on a refinance loan which at the process.
The president going through that will include -- bank appraisal that -- place to start again higher there an appraiser or usually less than 500 dollars to -- -- -- home.
-- find out what you low vs what you what the home is worth.
And if there's a there's only a couple of options available if you're underwater you can't refinance unless you're gonna bring in the cash to balance out -- -- the loan to value is not more than a 100% so that's generally off the table.
Then the that the owners looking -- of loan modification which is very tough to get.
Or generally a short sale and if you're gonna do that this is the very last -- you can do it and not pay tax on a primary residence as ordinary income -- -- -- Danny is sickening better.
It getting better out there -- it -- seeing the same with your sense.
Most of the market's staying the same there seems to be some some -- there are few bright spots and then there are that there -- areas of stabilization for example midwest northwest.
We're seeing some stabilization but we're also seeing bidding wars in some places.
Like them Silicon Valley rang out out and my hearing California in Orange County.
Seattle Miami and Tampa what's really needed it and North Dakota.
Are are seeing some some -- -- -- where people actually putting multiple offers an on one -- in driving the price up.
How is it's a really different depending on what region of the country here and that's to do a lot of -- -- before.
I'm moving -- -- nice to see you as always thank you so much.
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