Blog posted On September 20, 2024
With mortgage rates tumbling to their lowest levels in recent times, priced-out potential home buyers may start to hope again. Due to the recent lower-trending rates, refinance applications jumped starting in August. Now, with the Fed beginning its long-awaited rate cuts, home buyers could be in luck in the coming months.
Each rate drop has the potential to unlock a new wave of homeowners. According to Mphasis Digital Risk’s Q3 2024 survey, 64% are feeling encouraged about the directional shift of mortgage rates. Home buyers are sensing a change and growing optimistic, so a rate drop would ignite the buying market instantly.
How to plan ahead for potential rate drops?
While waiting with bated breath for the Fed to release upcoming announcements, how can potential home buyers get ahead of the game and optimize home loan savings? Down payment assistance programs exist in every state, with city-specific loan options available. Your go-to guides are your mortgage professionals like your loan officer and real estate agent. They can assist with pinpointing specific DPA programs that could fit your needs as a borrower.
You can also take advantage of programs and platforms that aren’t tied to a specific location. HomeFundIt™ is the nation’s first down payment gifting platform, designed to help home buyers buy a home sooner with a larger down payment. It’s an excellent way to maximize your savings, all while boosting your down payment contribution.
If you want to increase your savings even further, Rate Rebound gives you the ability to refinance if rates drop even further in the next 5 years, waiving lender fees and up to a $1,000 credit towards other refinance costs.* If rates do drop to 5% in the near future, further rate decreases aren’t out of the question; it’s best to be prepared for that possibility and set yourself up for success.
If you’re interested in boosting your savings and getting ahead of the game with forecasted rate drops, reach out today. We’re here to help you and your families!
Source: HousingWire, NPR
*CMG Home Loans will cover all customary lender fees which are processing fee, administrative fee, tax service fee, appraisal fee, and credit report fee. In addition, CMG Home Loans will also credit the borrower up to $1,000 towards additional third-party fees. This offer does not cover discount points. Credit cannot exceed total fees. Rate Rebound is only valid on future conventional conforming, government, and jumbo loans in our retail channel (future Construction Loans, All in One, HELOCs, Bond, or HFA loans are excluded). Rate Rebound is only available on loans originated by CMG Home Loans. There may be additional restrictions based on investor. Offer may not be redeemed for cash or credit and is nontransferable. Offer cannot be retroactively applied to any loans. Offer may not be used with any other discounts, promotions, or interest-only/buy-down and second-lien products. This offer is subject to changes or cancellation at any time at the sole discretion of CMG Home Loans. Additional restrictions/conditions may apply. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines. Program will be available on loans disclosed on or after 11/1/22. Program is applicable for refinances 6 months after closing up to 5 years from original note date and with a net tangible benefit which includes a rate reduction of 0.5%, going from an ARM to fixed rate, reducing loan term, movement to a more stable product, or a lower principal and interest payment. By refinancing the existing loan, the total finance charges may be higher over the life of the loan.
