One noteworthy example shared by Hoff is a loan that would have cost the borrower 1.213 points on Monday but only 0.375 points today. With a loan amount of $610,000, the savings in rate cost have decreased significantly from $7,400 to $3,200 today. Hoff emphasized the impact of these rate changes on borrowers, highlighting that saving 80 basis points could translate to significant monthly savings ranging from $150 to $250 depending on individual scenarios.
Hoff pointed out that borrowers who stand to benefit the most from these favorable rates are those who have recently purchased a home or completed a cash-out refinance in the past 12 to 18 months. Additionally, individuals who are currently in the process of buying a property or have been prequalified in the last year can take advantage of these lower rates to either reduce their monthly payments or potentially qualify for a higher purchase price.
She has proactively advised her clients to set up “rate alerts” to be prepared for advantageous rate levels. Looking ahead, Hoff anticipates that rates will continue to be volatile, likening the fluctuations to those seen in the stock market.
Cutting fees for VA borrowers
On the other hand, Patton Gade, the national director of military lending at UMortgage, shared his perspective on the current market conditions. He emphasized the importance of providing VA borrowers with loans that have minimal to no fees, focusing on offering the lowest possible cost for the veteran community.
Gade expressed caution regarding future rate movements, emphasizing the unpredictability of market shifts and advising against banking on assumptions for the next several months. He emphasized the need to prioritize the financial well-being of clients by offering transparent and cost-effective loan options.
Similarly, Daniel Sa, a division president at NFM Lending, highlighted the proactive approach taken to educate clients on the benefits of refinancing in the current favorable rate environment. He emphasized the potential for clients to refinance with no lender fees and receive appraisal reimbursements.
With a strategic outlook on the market, Sa mentioned competitive rates ranging from 6.375% to 6.750% for new customers, with the anticipation of further rate reductions in the coming months. The focus is on ensuring clients are well-informed and prepared to capitalize on potential rate decreases, maximizing their financial benefits through optimized mortgage terms.