Wow. This morning ‘Personal Income & Outlays’ came in just a bit lower than expected, and bonds rallied – again.
What this means is that if you have been toying with refinancing your Atlanta area home, then now is definitely the time to lock something in. Here, I’ll show you why:
The yield trend is quite obviously UP. And as yields increase, mortgage rates decrease. That’s just how it works.
So, now is ideal to lock a rate – even if it is just to lower your term.
For example, this morning I spoke with a client who owes $237,500 on their home, with a 30 year fixed rate at 5.375%; we locked a 20 year fixed rate refinance at 4.375%, and their payment increased by $43/mo. But, the interest they will save over the loan term is about $73,000. Not a bad trade-off for the slight monthly increase.
Interested? Call. But I suggest doing so quickly, since when yields rise this sharply, there is usually a sharp decline coming in the near future, which means rates would spike.
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