It's Refinancing Time Again!

If you haven't been following the mortgage market, now is again an excellent time to refinance. 

The Current 30-year mortgage rate is 3.51% for January, again near the lowest levels we have seen in 50 years, as shown in the chart below:

A combination of stock market volatility and concerns about the Wuhan Coronavirus have resulted in a big rally in the 10-Year Treasures last week, which has quickly driven rates down.  

I recently kicked off a refinancing of an investment property, which was at a 4.5% rate and I was able to get it down to 3.99% with no points and no cash out of pocket, 30-year fixed.  I used Loan Depot, who I have so far been pretty happy with, but I have worked with my loan officer in the past at different lenders and she is amazingly fast, has excellent knowledge and great customer service.  One of the nice things about refinancing this way is you can increase your monthly positive cash flow right away with a lower mortgage payment (the combination of the lower rate and new 30 year amortization can significantly increase monthly positive cash flow, especially if your rate is high and your mortgage has been outstanding for several years).  If you're interested in getting started in real estate investing, you might be interested in my book, Building a Financial Fortress:  Getting Started in Real Estate Investing.  

It's amazing how the technology has changed the loan application process.  I remember the days of having to locate and either mail or fax pages and pages of documents.  It used to take days to pull together all the things required for a loan application.  Now everything can be uploaded electronically to a portal in minutes.  With a simple, intuitive "to do" list and with most statements available online, it's pretty easy.  The whole process of applying and getting documents is so much faster than it was even 5 years ago.

It's still not easy to qualify for a loan.  You need to have excellent credit to start with and show plenty of income and assets.  It's really important to watch your credit score and keep vigilant about identity theft which could potentially ruin your credit.  Check out my recent post on this topic if you're interested in learning more about protecting your identity.

I hope you find this post useful as you chart your personal financial course and Build a Financial Fortress in 2020.

To see all my books on investing and leadership, click here.

Disclaimer:  I use affiliate links where I get paid a small amount if you buy the service or product. This helps support my blog.