08 Jan January 2020 Real Estate Broker Tip! Provide full service value to your clients.
As a Real Estate Professional, it’s key that you be the HUB of any and all real estate related information for your sphere of influence. One of the many ways to accomplish this is to plug them into a great lender, and taking that one step further – informing your database when there have been major changes to interest rates or the broader finance market. You don’t need to actually get them the loan, but being able to provide them with some basic guidance about their situation can go a long way.
Here’s the email I just sent to my clients. Feel free to use this as R&D (Rip off & Duplicate).
If you’ve been fortunate enough to not have too much turbulence in your Income due to Covid, I would strongly consider talking with your favorite lender to get refinanced. Interest Rates have continued to drop over the last 6 months to even lower historic lows.
If you are over 3% on your primary mortgage, or if you are over 4% on investment properties, there is a very high probability that you can refinance to to a lower rate. This is especially true if you purchased your home several years ago, because you’ve likely seen some hefty appreciation which can aid in improving the rate with loan to value requirements (as well as getting rid of PMI). It might even make sense to consolidate some higher interest debt into this (ie vehicles, credit cards, etc). Importantly, if you plan to sell your home in the next couple years, it will likely not make sense to refinance.
Here are some quick examples of how much the savings could be.
Home Value $450,000
Mortgage Balance $290,000
Current Rate 4.25%
Current Payment $1,426
New Rate 2.75%
New Payment $1,183
Monthly Savings $243
Home Value $550,000
Mortgage Balance $360,000
Current Rate 4.5%
Current Payment $1,824
New Rate 2.5%
New Payment $1,422
Monthly Savings $402
* Both of these examples show principal/interest payments (ie no taxes/insurance as that will stay the same). They are also on 30 year amortization schedules.
If you would like help figuring out if refinancing is a good idea based on your personal situation, what the payback period will be, or just otherwise discussing what your options are please feel free to shoot me a note and we can discuss your options. I can also send you straight to our preferred lender if you already know that you want to pursue a refinance!
Please be advised, obtaining financing right now is a little more painful and time consuming (mostly because of covid) so be prepared for it to take a few months and test your patience 😉