Get Ready: How to Prepare for
Lower Mortgage Rates

The Federal Reserve (The Fed) is in the spotlight again, and many experts are expecting at least two, maybe even three, interest rate cuts to end the year. While the Fed doesn’t directly set mortgage rates, its decisions can nudge them lower, and often, rates start to dip in anticipation.

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That’s good news for homeowners and buyers! Here are a few simple steps you can take now to get ready to lock in a low rate:

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1. Organize Your Paperwork
   Lenders will ask for details about your income and assets. If you already have these documents gathered, you’ll be able to move faster when the time comes.

2. Keep Your Credit Strong
   Your credit score plays a big role in the rate you qualify for. To keep it in top shape, avoid opening new accounts and focus on paying down existing balances.

3. Think About Debt Consolidation
   If you’re carrying high-interest debt, like credit cards or personal loans, refinancing could give you the chance to roll it into your mortgage at a lower rate. This can simplify your finances and increase your savings.

 

Check out these recent refinance savings stories!

 

Paid off over $250,000 in high interest debt, removing 12 separate monthly payments, plus got $10,000 at closing.

 

Bought a home with boyfriend last year, they have since separated so refinanced to get it in only client’s name, dropped Mortgage Insurance, payment lowered by over $200 a month, plus got $7,000 cash at closing.

 

Daughter is getting married, got $60,000 cash out for the wedding and paid off over $16,000 in debt.

 

Cashout for debt consolidation, paid off 22 different high interest debts totaling over $100,000! Plus, borrower got over $13,000 at closing.

 

Refinanced to pay off over $26,000 in debt and buy out ex, to get mortgage in their name.

 

Cashout refinance of a free and clear home inherited from grandparents to upgrade to a new roof (it was too old for insurance company to continue coverage), HVAC, plus add an all-house generator. Got $40,000 at closing, plus paid off auto loan!

 

How a refinance could help you:

• Lower Interest Rates
  Mortgage rates are usually far lower than credit cards or unsecured personal loans. By choosing a cash-out refinance, you can tap into your home’s equity to pay off those high interest balances, effectively replacing them with one lower interest mortgage payment.

• Get Cash Out
  Use your home equity and get cash for life events such as a wedding, college tuition, divorce or simply for a new porch or other home improvement.

• Simplified Finances
  Juggling multiple payments, due dates, and interest rates can be stressful. Refinancing allows you to roll those balances into one predictable monthly mortgage payment, making it easier to stay organized and on track.

• Improved Monthly Cash Flow
  Refinancing into a lower rate or adjusting your loan term can reduce your overall monthly mortgage payment. That extra breathing room can be used to pay down remaining debts faster, boost your savings, or help build a financial cushion for the future.

• Greater Financial Stability
  Credit card rates can fluctuate, but a refinanced mortgage offers consistency and stability. This predictability can give you more confidence in planning your budget and long-term financial goals.

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Curious what a lower rate could mean for you? Reach out today to your Mortgage Specialist about our Cash-Out and Rate/Term Refinance options or call 1-800-270-7082.

By refinancing an existing loan, total finance charges may be higher over the life of the loan.