Q: I noticed that interest rates seem to be a bit lower lately. Is this a new trend? We have a $389,000.00 30 year fixed at 3.5% with a payment of $2,245.00—should we wait or lock now? How much can we save on our monthly payment? Can we pull $50,000.00 cash out too? How long can we lock the rate for? Can we pull cash out to buy a rental or vacation home? Are the rates higher for rentals and second homes?

A: My advice is to LOCK NOW because inflation news could push rates up any time. You can save at least $200 per month with NO CLOSING COSTS at an interest rate of 2.94% (2.94% a.p.r.) with no cash out and with $50,000.00 cash out you can geta NO COST loan at 2.99% (2.99% a.p.r.) with a payment of $2,267.00 which is only $32.00 mor per month than you are currently paying. You could also get substantial cash out without changing your payment! Please call me at 831-818-7700 or send email to jchubb1@gmail.com for a confidential discussion regarding your individual qualifications, options and possibilities.

Inflation is when prices on the wholesale and consumer level go up. We are seeing some bottlenecks in the production and delivery of wholesale goods and parts due to the effects of the covid pandemic. When the Federal Reserve believes that the overall demand for goods and services will continue to increase after the bottlenecks are removed, they will push rates UP by slowing their purchases of mortgage backed securities. When the Fed moves, which could be anytime, it will be TOO LATE, so my advice is to CALL NOW FOR A COMPLETE EXPLANATION OF YOUR OPTIONS AND POSSIBILITIES. Fyi: We honor our interest rate locks as FOR AS LONG AS NECESSARY—as long as our borrowers get us the needed documentation in a timely manner—this is a feature you may not find elsewhere and NOW IS NOT A TIME TO LET ANYONE CONVINCE YOU TO WAIT ON LOCKING OR TO PLAN TO LOCK AT SOME FUTURE TIME WHEN THEY CAN MAKE MORE MONEY ON A SHORTER TERM LOCK.

YES! You can pull cash out to buy a rental or vacation home. The rates a bit higher, but with rates like we have today payment are historically low and very manageable. It’s best to call me to review individual options to achieve individual goals. I can help you to make informed decisions that fully address your long and short term financial goals as well as addressing any payment and/or equity building objectives.

Q: When can we remove mortgage insurance?

A: Depending on the current value of your home and your loan amount you may have one or more good options. Generically, you can often benefit from a refinance and sometimes you can petition with a current appraisal to get mortgage insurance removed on conventional loans. On FHA loans you need to refinance.