Whatever you do today, do not panic like Chicken Little. Are you going to spend the day wondering if you should train for the 2018 Boston Marathon?* Good for you! Will you spend today pondering a semi-legitimate excuse why you can’t work tomorrow so that you can celebrate St. Patrick’s Day? Go for it! Whatever you do today, do not panic about the Federal Reserve’s slight increase in interest rates. The sky is not actually falling, but it is a great time to think about your mortgage.
Mortgage rates are cyclical. Interest rates go down, then they go up, before they go back down again. We have been spoiled for a very long time with historically low rates. For at least the short term, they will be on the rise; however, we have no idea where they will eventually peak or if they will ever return to the crazy low rates of recent years. What does this mean for you?
Now is a great time to refinance your existing mortgage. If you have an adjustable mortgage, now is the ideal time to lock in a stable, fixed interest rate. If you have owned your house for a while and have not recently refinanced, now is a great time to explore a lower, fixed interest rate.
This is an excellent time to sell your current home or buy a new home. The real estate market is currently in a very sweet spot where homes are still competitively priced and mortgage rates are still very low.
Does it matter which lender you work with on a purchase or refinance? Yes, yes, yes (did we say yes?). The reality is that most lenders have access to and can offer you similar mortgage programs; however, not all lenders are not all created equal. Can you keep a secret? At Weiner Jackson & Simmons, we have our favorite lenders (and real estate agents too). We love working with people who are detail oriented, communicate with everyone involved in the transaction, and who do not panic when we hit a detour, as so often happens. If this is something that you want to explore, let us know and we will point you in the right direction.
So, no, the sky is not falling. The sun is shining and spring is only four days away. Get ready!
* If you are thinking of training for the 2017 Boston Marathon and haven’t yet started, it is time to panic, unless you are Batman, in which case, you should be totally fine.
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