The Countdown within the Countdown!
We spoke last week about the “90 day countdown” to get all the deals into your system so they can close in 2020. All very important points and I hope you take that information and use it to the benefit of your clients and referral partners.
This week we need to add to that post an additional piece of very important information. Information we don’t always, if ever, get a heads up about. Interest rates on refinances WILL be going up in December. Make no mistake about it, the recent “tax” on refinances by the agencies has only been deferred to December, not eliminated! This is a very important distinction!
Now more than ever it’s important to understand this important timeline and work within BOTHtimeframes and coach you clients and referral partners about it. We know for a fact that there will be a fifty basis point increase in the cost of refinancing in December! Here is a useful article you can share:
https://www.housingwire.com/articles/fhfa-delays-refinance-fee-start-date-to-dec-1/
So we know that about 60% of loans being done right now are refinances; would it be a really good idea to let your clients and referral partners know that the clock is ticking on a rate hike?
Many of you are using the “Forever Home Strategy®” to generate refinance and purchase opportunities. In the course of this important conversation, it becomes clear that setting a deadline before the refinance rate hike is important, but also generating listing opportunities and purchases for your Realtor® referral partners is a great use of your time!
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