Now that Rates Jumped, Is This a Good Time for Mortgage Refinancing?
When rates take a sudden hike upward, the demand from borrowers declines. A couple weeks ago, a home owner could get an interest rate of 4.875% with zero points. Then whammo. The stock market climbed, the bond market reacted by falling and interest rates shot up by a full point. Rates change daily.
That's not to say that now is not a good time to think about mortgage refinancing, because rates are still historically low and below 6%. Heck, I can recall the recall the days when interest rates were 18% and I had to walk barefoot in the snow to school. But before you rush down to the bank to refinance your mortgage, consider whether you're actually saving any money . . . read more about Mortgage Refinancing.
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Comments
I have a question…My Wife and I have been trying to buy a retirement home in the mountains. Our Agent has been working with us diligently for 4 months now. We have put offers on 4 homes, but everytime we make an offer, suddenly theres multi-offers and were told we need to “Up” our offer, $5000.00-10,000.00 more if we REALLY want to get the house…Whats going on here. I understand this is a business and Realtors want to mke money, but at what cost to clients and their dignity.Our Agent KNOWS we only have a set amount of money and yet they keep insisting we add a little more to “Sweeten the Offer”. This is forcing us to take out a loan for more than we can actually afford. Isn’t this the kind of business practices that got our country into this economic disaster, making people take on morgages they can’t afford?… Thank You for listening…Phrank
Many homes right now are priced under market value, which attract multiple offers. I have 20 offers on some of my listings, which are selling anywhere from $10,000 to $50,000 over list price. It doesn’t mean they are selling for more than the home is worth, however. You should look at the comparable sales (solds within the last 3 months) and base your offer on that pricing. Your lender’s appraisal may come in less than that, and if it does, you have negotiating power to lower the price. But if you don’t offer enough to get into contract, you may never get into contract at all. Does this make sense to you?
Yes it does and thats not the problem.. What I’m asking is when were interested in a home no one says there are multiple offers on this particular home until after we make our offer…Then all of a sudden its an auction and the house goes to the highest bidder thats probably just me bidding against myself… Theres no “rights” to a buyer to be given some kind of PROOF that theres actually another person offering more. When I ask the agent who’s offering more, I’m told. “We can’t tell you that”,… or How much was offered, “We can’t tell you that”..Who Offered First?, “We can’t tell you that?”…What can they tell the Buyer..? Theres way to much secrecy and chance for being scammed, because We, (The Buyer), have no way of knowing if there is in fact another Person Offering more… Where are our rights to know?….Thank You…Phrank
I’d suggest you hire an agent you trust because it sounds to me like you may not trust your agent.
It is very common for there to be no offers until an offer is made and then everybody else jumps on it, too. The listing agent represents the seller, so it is not in the seller’s interest to disclose who the other offers are from nor the offering price.
I realize this sounds very confusing because we’re in a really squirrelly market right now, unlike any other market I’ve ever seen, and what used to be the norm is not any more.
Thank You Homebuyer… You could be right. Trust is a comodity thats fleeting these days when it comes to making money.. It’s just depressing because We have the Money, We know what We want, and have found the homes that are available and we can’t buy…Thanks again…Phrank
phrank, I’m a realtor in Texas. Sometimes when someone begins to show interest in a property, it seems to make some who were on the fence decide to get in the game. I can’t explain it other than when somebody else shows an interest in something, maybe it validates an interest in others.
In some states, a realtor can determine the sales price of a home after the close. If you are in such a state, you might ask your realtor to provide you information on some of those you missed out on.
Good luck in getting your new home.