Q: We keep hearing you say to prepare to refinance or buy a new home with lower mortgage interest rates. However, rates seem to go down and up and then up and back down with no actually dramatic improvement. When will we see some drastic rate reductions?
A: As the title to this article states—we are experiencing some pretty strange times in the world today. Without commenting on the whys and wherefores or wondering what a field day the late Hunter S. Thompson might have with a 2019 version of his “Fear and Loathing” franchise of cutting edge political commentary, I have to predict that LOWER RATES HAVE ACTUALLY ARRIVED AND SHOULD GRADUALLY EASE DOWN IN A SEE SAW MOTION AS CONDITONS FOR A CIVIL GLOBAL DISCOURSE AND SENSIBLE ECONOMIC COOPERATION DETERIORATE FURTHER. This process could last until and through the next U.S. election. Regardless who you like in this race to very differing goals, my advice to everyone who owns a home is to refinance NOW or whenever the formula works for you and to assume that you may be able to benefit from refinancing more than twice in the coming 24-36 months.
Why do I joke about the global geopolitical melt down we are currently engaged in, when I probably should be selling life boats where the glaciers are melting? I’m too old for a new career, I cannot make sense of the current events that glare at me whenever I turn on my phone or TV, I still have some crazy traditional American optimism that tells me that things will get better if we hang in there and also if we all VOTE. And… I DO SEE SOME POSSIBLE CURRENT AND FUTURE OPPORTUNITES FOR ALL HOMEOWNERS TO SAVE MONEY THAT MIGHT COME IN HANDY BEFORE CURRENT UNPREDICTABLE CONDITIONS GIVE WAY TO A NEW POLITICAL AND ECONOMIC CYCLE.
If our economy is allowed to continue gradually deteriorating through self-serving political bluster, irresponsible trade wars and tariffs, we will probably see the historically low interest rates that always are a result of flagging domestic and global economies. The signs are there and the trend is beginning—how far it goes and how low the rates will eventually go are anybody’s guess-which is why I’m advising everyone to take advantage of saving money on lower rates whenever it makes sense and NOT wait for a giant home run. To see how this might look for you now or in the future you can call me at 831-818-7700 or send email to jchubb1@gmail.com for individual guidance, formulas and strategies that you can employ to save as much money as possible whenever it works for you.