Rates!

Have you ever felt like you were running around like a chicken with your head cut off? Well, that's pretty much how I felt Wednesday morning when I arrived at work and saw that interest rates on a conventional 30 year loan were at 4.5%. I mean, what do you do when you know that everyone and their dog needs to know about this information and you know that there isn't enough time to tell all of those people. Well, after I calmed down I was able to lock in a couple of borrowers that had done applications with me and I called everyone I knew. Unfortunately, rates did not stay low for long, and within 2 hours rates had risen back to 5.125%. The moral of the story is...when you are thinking of doing a refinance, get your application submitted as soon as possible so that your loan officer has the opportunity to lock your rate in when rates drop significantly.

Testimonials

"I've recommended my buyers to John Neil and Wasatch Mortgage Solutions regularly. John establishes a good raport with my buyers and offers a competitivc good faith estimate. John answers their questions and processes his loans efficiently and avoids delay. John holds the record for my quickest loan processed from offer to funding in 8 business days while still offering the most favorable terms for my buyer. Both my buyer and I were impressed with John's capabilities and expertise. I'm glad I've used John's services in the past and plan to continue calling on him in the future"
- Patience Fisher, Bonneville Realty

"I refinanced my home about 5 months ago, and Wasatch Mortgage hooked me up with John Neil. What a pleasant surprise. I told him what my needs were and what my situation was at the time, and he immediately went to work for me. He sincerely listened to me. He presented me with three options that I could do, with no pressure. He was very informed in the mortgage industry, and also had a very good association with a title company that I ended up using. He thanked me for having good credit, and he even called me up a couple of months after helping me get the loan to see how I was doing. In talking with him at that time, he went way beyong the call of duty, and hooked me up with an individual that would be willing to list my business that we are trying to sell. I would recommend John Neil to anyone that is trying to get financing on a home. I have gone through this process 4 times now, and my experience with John and Wasatch Mortgage Solutions was my best experience"
- Robert Willmore

"John was at all times prompt, courteous and professional. He explained loan options clearly finding us the lowest rate. I recommend him highly!"
- Marsha Ray

When does it make sense to refinance?

I have heard some people say that you have to improve your interest rate by a full percent to make it worth it. Others say a 1/2 percent is enough to make it worth it. The fact of the matter is that there is more to it than just the percentage that you improve your rate. It's really quite simple actually. You just have to find out 2 things: 1. When is my break even point? (which is calculated by dividing the % cost of the refinance by the % improvement in the rate. For example if the closing costs are equal to 2% and you improve your interest rate by 1% than your break even point is 2 years.) and 2. How long do I plan on staying in the home? If your break even point is 2 years and you plan to stay in the home for at least 3 years than it is to your advantage to refinance. I recently refinanced a client who was planning on selling their home in one year. Because of this, it didn't make any sense to do the refinance if they paid closing costs. We were able to structure their new loan so that they still lowered their interest rate without paying any closing costs. The moral of the story is that everybody's situation is different and a good loan officer should be able to help you understand why it does or does not make sense to refinance.