Welcome to the Weekly Mortgage Market Update! This is your go-to source for the latest news, trends, and insights on the ever-evolving world of mortgages. Whether you’re a first-time homebuyer or a seasoned real estate investor, staying informed about the mortgage market is crucial to making wise financial decisions. Every week, we’ll provide a comprehensive overview of the most critical developments in the mortgage industry, including changes in interest rates, mortgage products, and housing market conditions.
September Home Prices Fall at a Slower Pace than July/August
Black Night said home prices fell at half the rate in July and August. Black Night is a leading provider of data and analytic solutions in the mortgage industry. FHFA’s report will be released at the end of the month, hopefully providing some confirmation on home price decreases leveling off.
Consumer Prices Rose 0.4% in October, Less Than Expected, as Inflation Eases
Although inflation remains a threat to the U.S. economy, the consumer price index (CPI) climbed less than predicted in October, suggesting that pressures may be beginning to ease. This also led to a massive bond rally and brought interest rates down by .62%! It was the biggest rally in over a decade. For those of you currently in the market for a home, it is a good time to lock in an interest rate.
Next week’s potential market-moving reports are:
Monday, November 14th – NY Fed 1-year Inflation Expectations
Tuesday, November 15th – Real Household Debt, Real Mortgage Debt
Wednesday, November 16th – NAHB Home Builders’ Index, Business Inventories
Thursday, November 17th – Initial Jobless Claims, Building Permits, and Housing Starts
Friday, November 18th – Existing Home Sales, Leading Economic Indicators
We have seen a continuation of the downward trend in mortgage applications, with this being the 6th straight week of decline. This is a concerning development for the real estate industry, as fewer applications could signal a slowdown in the housing market. Despite a slight decline in mortgage rates, applications decreased for a sixth consecutive week, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Oct. 28.
CoreLogic Report: Affordable Areas Thrive Amid Home Price Growth
Even though home sales and the number of mortgages continued their months-long declines in September, annual home price increases remained in the double digits. Compared to the same month in 2021, the CoreLogic Home Price Index (HPI), the first look each month at prices from the previous two months, increased by 11.4% this year. Even if mortgage rates are rising, the appreciation of the prior year is still substantial. However, preference is slowing, and month-to-month variations have become negative. The growth rate dropped from August to September by 0.5%.Home prices fuel homebuyer enthusiasm for properties in relatively cheaper places in more expensive states on the West Coast and Northeast. According to CoreLogic, the conditions in the Southeast may benefit from this out-migration. Florida has led the country in home price growth for eight straight months.
https://www.elithevaloanguy.com/wp-content/uploads/2022/11/Oahu-houses-in-Manoa.webp506900Elias Halvorsonhttps://www.elithevaloanguy.com/wp-content/uploads/2022/01/logo.pngElias Halvorson2022-11-06 05:24:032025-09-01 03:49:426th Week of Mortgage Application Fall
Welcome to our Guide on How to Secure Hawaii VA Loans with low-interest rates! In this comprehensive resource, we will explore the essential steps and strategies for obtaining VA loans in the beautiful islands of Hawaii while taking advantage of competitive interest rates.
Hawaii VA Loans: An Effective Way to Secure a Mortgage in a Rising Interest Rate Market
If you’re a veteran or active-duty military member looking to buy a home in Hawaii, now is the time to act. The current interest rate market is shifting, and it’s becoming more challenging to qualify for a mortgage as interest rates rise. For this reason, understanding the ins and outs of getting a mortgage through the VA Loan Program is more important than ever if you qualify. This blog post will discuss how to get a VA loan in Hawaii and what to expect in today’s market.
100% Financing is Achievable
As a homebuyer in Hawaii, you must understand the facts about these government-backed mortgages. For example, did you know that a VA loan is not necessarily monetary? Instead, the federal government guarantees a portion of your loan (usually around 25%), making it easier for lenders to provide financing for up to 100% of the home’s value. In addition, VA loans come with some of the lowest interest rates available, which means that you can save a significant amount of money over the life of your loan. VA loans come with fees and closing costs, which will incorporate into the loan and finance.
Despite their many benefits, VA loans are one of the most misunderstood mortgage products on the market. It is because so many different types of VA loans are available. For example, there are VA purchase loans, which can finance the purchase of a home. There are also VA refinance loans, which can lower your monthly payments or get cash out of your home equity. And finally, there are VA rehab loans, which can finance the repair or renovation of a home.
Top 5 Myths About Hawaii VA loans
We’ve compiled a list of the top 5 myths about Hawaii VA loans so that you can be well-equipped with the knowledge you need to make the most informed decision when you’re ready to purchase a home in Hawaii.
Myth #01: You need perfect credit to qualify
While it’s true that your credit score plays an important role in the loan approval process, you don’t need perfect credit to qualify for a VA loan. Even with bad credit, you may still be eligible for a VA loan if you have a strong enough income and a good history of making on-time payments. Your lender will then make the final decision on whether or not to approve your loan. If you’re considering borrowing from a conventional lender, you’ll need a reasonably good credit score, but a VA lender may be more lenient. Some lenders approve VA loans for veterans with credit scores as low as 550.
Myth #02: You need a huge down payment
Conventional loans typically need a 5-20% down payment, but VA loans may not. With an unencumbered VA entitlement, you can get a VA loan with no money down. If your entitlement is insufficient, a small down payment might be necessary. A qualified VA mortgage broker can help calculate your loan limit and down payment requirements. A VA funding fee is required for most VA mortgages, with exceptions for disability ratings above 10%. The fee sustains the program and includes in the loan amount.
Myth #03: VA loans are only for first-time homebuyers
While VA loans are an excellent option for first-time homebuyers, they’re also perfect for anyone looking to buy a new home at any stage. If you’re a veteran or active-duty military member, you may be eligible for a VA loan regardless of whether you’ve bought a home. Even if you’ve already used your VA loan entitlement, you may still be eligible to use it again if you meet specific requirements, including selling your previous home or paying off your loan in full.
Myth #04: You can only use a VA loan to buy a single-family home
VA loans can finance the purchase of various properties, including single-family homes, townhouses, and even condominiums. However, there are a few restrictions. For example, you may not be able to use a VA loan to purchase an investment property or a vacation home. But you should be eligible as long as the property you’re looking to purchase will be your primary residence. Consulting with a mortgage broker is the best way to determine whether a parcel is eligible for VA financing.
Myth #05: The interest rate on a VA loan is always higher than a conventional mortgage
We touched on this briefly, but it’s worth repeating: the interest rate on a VA loan is not always higher than a conventional mortgage. VA loans often come with some of the lowest interest rates available, especially when you compare them to other types of loans like FHA or subprime mortgages. It is because VA loans back by the government, which gives lenders the confidence to offer lower interest rates. Low interest rates are making VA loans desirable for home buyers in the current climate.
Our Final Thoughts
If you’re considering using a VA loan to purchase a home in Hawaii, now is the time to start working with a Hawaii VA mortgage broker who can help you navigate the process. With interest rates rising, getting pre-approved for a loan and locking in a low rate is more important than ever. A veteran loan officer can help you compare rates from different lenders and find the best loan for your needs.The first step in getting a VA loan is to obtain your Certificate of Eligibility (COE). The COE verifies to the lender that you are eligible for a VA-backed loan. You can receive your COE through an online service offered by the Department of Veterans Affairs, through your lender, or by mail through the Veterans Benefits Administration. A mortgage broker, however, will be able to help you obtain your COE with little to no hassle and will also be able to negotiate the best interest rate on your behalf.Get in touch with me to learn more about VA loans and how I can help you finance the purchase of your new home in Hawaii.Elias Halvorson has over a decade of experience in the financial industry and is one of the top brokers in this specialist field.
https://www.elithevaloanguy.com/wp-content/uploads/2022/05/How-to-Secure-a-Hawaii-VA-Loan-Step-by-Step-Support-for-Veterans-and-Military-Families.webp506900Elias Halvorsonhttps://www.elithevaloanguy.com/wp-content/uploads/2022/01/logo.pngElias Halvorson2022-05-21 17:20:332025-05-03 14:33:34How to Secure Hawaii VA Loans – Low Interest Rates
It’s national volunteer week in the US, and there’s no better time to explore Hawaii volunteer ops for giving back to our communities. Whether you’re a seasoned pro or a first-time volunteer, it’s an excellent chance to help people, especially groups like veterans. As a Hawaii mortgage broker specializing in Oahu VA loans, we assist veterans by securing low-interest rates on Honolulu VA mortgages. Additionally, we connect people to volunteer programs for aiding veterans in Hawaii. Let’s dive into some of the top volunteer initiatives for supporting veterans across Aloha State.
Top 5 Hawaii Volunteer Programs: Empower Veterans & Strengthen Communities
Introducing our Top 5 Hawaii Volunteer Ops that empower veterans and create positive change in communities across Aloha State. These organizations offer opportunities for people from all backgrounds to come together and make a real difference in the lives of veterans.
AMVETS
The American Veterans (AMVETS) is a national veteran service designed to support veterans nationwide. In Hawaii, the group runs numerous programs and special events. They accept everyone as volunteers, ranging from veterans and serving military personnel to civilians. You’ll find an email address on the above page if you want to join.
Habitat for Humanity
Habitat for Humanity is a famous voluntary service that provides everything from employment opportunities to housing for underserved communities. Its Honolulu branch runs fundraising efforts and accepts volunteers from all walks of life. It also runs corporate partnerships if you’re a company that wishes to cooperate.
American Red Cross
Despite mainly being known as a disaster relief charity, the American Red Cross provides help to veterans and military service personnel across the country. In Hawaii, it aids and supports veterans in numerous ways. Volunteers do up to 90% of the charity’s work. It also has a more in-depth registration process, and you’ll often select based on your skills. However, you can still fill out a profile and see what happens.
CORE Studios
CORE Studios is a veteran-owned production company that provides education and employment to ex-service personnel. The organization is always looking for new partners and instructors to help expand its offering, so get in touch with them to see how you can help.
Volunteers of America
Volunteers of America is a self-explanatory organization. It helps all people, from the vulnerable to older people and veterans. Its services include support and reintegration, affordable housing, employment resources, and more. If you’d like to get involved in your community, the easiest way is to locate your closest local office. Call them directly or email them to see what kind of programs they’re currently running. As one of the biggest support services in the country, it’s best to deal locally.
Final Thoughts
National volunteer week is a great time to push yourself into changing lives for the better. Hopefully, when you join now will motivate you to volunteer for the rest of the year, too. If you know any veterans that need help or advice related to housing, get in touch. We help arrange VA loans with low-interest rates, and, as a mortgage broker, we make it our mission to get the best deals. Reach out at elias@c2hawaii, or 808-517-6416 to see how we can help.
The homebuying process in Hawaii follows standard steps, but VA buyers often face hidden delays like appraisal issues, condo approval problems, and title complications. Knowing these pitfalls early can help buyers avoid costly surprises and close on time.
Buying a home in Hawaii isn’t hard — unexpected delays are. VA buyers who understand appraisal rules, condo approval requirements, and island-specific legal issues can avoid most closing problems and move forward with confidence.
Key Takeaways
The homebuying process in Hawaii includes unique hidden delays
VA appraisals and condo approval issues are common
Title and probate problems can slow closings
Seller education matters more in Hawaii
Local VA expertise helps prevent costly surprises
The Homebuying Process in Hawaii (And the Hidden Delays Buyers Miss)
The homebuying process in Hawaii generally follows the same steps as anywhere else: pre-approval, offer, appraisal, and closing. However, Hawaii’s unique real estate landscape creates hidden delays that often surprise buyers, especially those using VA loans.
From condo approval issues to appraisal challenges and complex ownership histories, these “small” problems can stall or even derail a purchase if they aren’t identified early.
This guide breaks down:
The standard homebuying process in Hawaii
The most common hidden delays
How VA buyers can avoid them
The Standard Homebuying Process in Hawaii
Most Hawaii home purchases follow these steps:
Mortgage pre-approval (VA or conventional)
Home search and offer submission
Offer acceptance and escrow opening
Appraisal and inspections
Underwriting and final loan approval
Closing and recording
While the steps look simple on paper, Hawaii adds extra layers that buyers — and even some agents — don’t always anticipate.
Hidden Delays in the Homebuying Process in Hawaii
VA Appraisal and Tidewater Value Issues
VA appraisals in Hawaii can be a major source of delay — not because they’re “harder,” but because values can vary dramatically by neighborhood, building, and even floor level.
Common issues include:
Limited comparable sales
Rapid price changes
Properties priced ahead of market value
When a VA appraisal comes in low, the Tidewater process may be triggered, adding time to the transaction. Buyers who aren’t prepared often feel blindsided.
How to avoid delays:
Work with a lender who understands Hawaii VA appraisals and can prepare strong comparable data upfront.
A few idiosyncrasies in this current market and here on Oahu
Appraisal Clause
Where this comes into play for Veteran buyers is when the appraisal comes in lower than the price agreed upon in the purchase contract. In normal markets, buyers would not accept this. However, because it is such a competitive market and most houses have numerous asking price offers, an appraisal clause is usually necessary to keep VA buyers competitive.
Appraisal clause – One thing much less common in normal markets, but something Veteran buyers utilizing their Hawaii VA home loan benefit now usually need to include is an appraisal clause. An appraisal clause is something written in the purchase contract stating the veteran agrees to pay up to a certain amount over the appraised value and/or agrees to pay the value agreed to on the purchase contract.
Where this comes into play for Veteran buyers is when the appraisal comes in lower than the price agreed upon in the purchase contract. In normal markets, buyers would not accept this. However, because it is such a competitive market and most houses have numerous asking price offers, an appraisal clause is usually necessary to keep VA buyers competitive.
VA condos – So you have a condo you like?
Unlike most conventional financing, you need to check if your condo is on the VA-approved list. You can check if your condo is on the VA-approved list here https://lgy.va.gov/lgyhub/ condo-report. If you do not see your condo on the approved condo list, that does not mean you cannot buy it, it just means you’ll likely need to go through the condo approval process.
This can take 1-2 months and will involve your lender working with the VA and the condo association to provide the necessary documents. These could include:
Homeowner association bylaws and budget
Declaration of covenants, conditions, and restrictions
Special assessments/litigation statements
Current financials
Plat or map
Minutes of the last two homeowner association meetings
The VA will look at owner-occupancy rates and other potential areas which could be red flags with your VA condo purchase. Pending litigation in the condominium complex or pending assessments can be issues that could lead to VA denial of the Condo approval request.
Lava zones
Lava zones are something VA buyers will only have to worry about on the Big Island. There are only two things VA buyers need to be aware of.
First, the VA will lend in any Lava Zone. Most conventional loans do not allow lava zone 1, and neither does FHA. With a VA home loan Hawaii, you have the ability to buy in any lava zone. That being said, the VA will require “lava” insurance for at least the amount of the loan, for homes purchased in lava zone 1 & 2.
Another thing common on some of the other islands not named Oahu is properties having water wells or catchment systems. Regardless of which one the property has, the VA requires a water test for a Hawaii home loan.
Click here for the particular VA circular regarding testing requirements, but usually entail water tests for ecoli, metals, etc.
Sewage system acceptability is also a requirement, usually needed for homes on the Big Island, but there are still places on Oahu that have Cesspools. For cesspools, your lender will need to check with the state/local government to confirm the proper permitting of the cesspool. If the home cesspool was improperly permitted, a new/update permit will be needed. Of note:
If it is an unpermitted cesspool, the buyer may have to install a septic system in order to complete the purchase.
If additions have been made to the house, then confirm the cesspool/septic can handle additions (ie was a 2-bedroom house and homeowners added another room)
https://www.elithevaloanguy.com/wp-content/uploads/2022/02/Home-Buying-Process-in-Hawaii-Work-with-Local-Experts-to-Find-Your-Dream-Home.webp338600Elias Halvorsonhttps://www.elithevaloanguy.com/wp-content/uploads/2022/01/logo.pngElias Halvorson2022-02-10 18:51:192026-01-19 18:33:36The Homebuying Process in Hawaii (And the Hidden Delays Buyers Miss)
The home buying process for first-time home buyers is usually a daunting task, whether a veteran/member utilizing their VA home loan benefit or individuals buying a home via conventional financing. It is even more complicated if you are not aware of the steps. You may already be stressed out from PCSing OCONUS to Hawaii, so keep reading to find out what you, as a veteran need to do to buy your first home utilizing your VA loan. This guide will help you avoid many common mistakes that might happen along the way.
First-time Home Buyer
A first-time home buyer is someone who has never bought or sold a home before. The process of buying a home is different for each person, but there are some common steps.
First, get pre-approved for a loan before you start looking at homes. There are many reasons to get pre-approved:
Getting pre-approved helps buyers understand their budget. Most home buyers, regardless of being first-time buyers, do not have a clue how much they can actually afford. So, getting pre-approved is imperative to understand your purchasing power. Without this, home buyers often waste their time looking at houses out of their price range, or, lamenting the fact they can only buy homes up to some pre-determined amount in their head. A pre-approval takes the guesswork out of the situation.
A pre-approval shows sellers you are a serious buyer
A pre-approval enables a buyer to put an offer quickly. In today’s crazy market, speed is very important. If you as a buyer are not pre-approved, and your bank takes a day or two to get you a pre-approval letter (We give same-day pre-approvals), then you will be waiting while the place you want to place an offer on could go under contract.
The pre-approval process is fairly simple. You will need to apply for a loan (you can apply online here ), and submit substantiating documents. These usually include:
Paystubs/LES
Bank Statements
Tax Returns
Working with VA Mortgage Broker
There could be other documents you may need, and your VA mortgage broker will provide you with a list of specific documents you will need to provide based on your employment and the type of loan you are applying for.
Once you’re pre-approved, now you need to find a real estate agent. It’s during this point, or during the pre-approval process, you need to start looking for a real estate agent. Just like the process of choosing a loan officer, you should trust your real estate professional. Your real estate professional should not be high-pressure or pushy. Ultimately, both the real estate agent and mortgage officer work for you, not the other way around.
Find your home
Your real estate professional and your mortgage officer will work together closing during the process, but during your search, you will primarily be working with your agent. The real estate professional will contact the mortgage officer for homes you might be visiting soon to make sure the financing works. Although you might be pre-approved for a certain dollar amount, it’s really the monthly payment you need to be aware of. A $1,000,000 home might be cheaper monthly than a $900,000 condo, due to the Condo dues which would likely push the total monthly bill higher. This is where your mortgage officer will confirm you qualify for the house/condo.
Submit an offer
You’ve found a house you like, now you work with your agent and VA loan officer to submit an offer.
Your offer has been accepted! From here, your loan officer may ask for updated documents (paystubs, bank statements, etc), and your loan will be submitted for processing/underwriting. The mortgage officer will order an appraisal, and your loan will be submitted to underwriting. Your loan has specific guidelines which have to be met and the underwriter ensures everything meets the guidelines. Providing everything meets the guidelines, your loan will be “conditionally approved” meaning you will have to provide a few more documents, but your loan is a few short steps The biggest hurdle you have left is the appraisal. As long as the appraisal comes back with a value that you are under contract for, there will be no issues. After you submit the remaining documents and the appraisal comes back, your loan will be submitted for final approval.
You’ve received a final approval/clearance to close. Congratulations!!! The process is almost over! You will sign papers at the escrow company, or possibly with a mobile notary in this COVID era. After signing, the process will take another 2-3 days as the bank will fund the loan and the title recording will be registered with the government. Congratulations, you are now officially a homeowner!!!
https://www.elithevaloanguy.com/wp-content/uploads/2022/02/First-time-home-buyers-in-hawaii.webp506900Elias Halvorsonhttps://www.elithevaloanguy.com/wp-content/uploads/2022/01/logo.pngElias Halvorson2022-02-05 18:49:532025-05-03 15:00:59The home buying process for first-time home buyers
The VA home loan program provides numerous benefits over other types of loans. If you are a veteran and looking to buy a house, this is the best, quickest, and most cost-effective option for you. The application process is simple, and a pre-approval can give in as little as an hour. There are also flexible underwriting guidelines, with the most lenient debt-to-income ratios allowed, as well as no down payment or PMI requirement. In addition, VA loans have competitive interest rates that can be as low as 2.25% APR with no prepayment penalty.
But you likely know all these things and the title of this blog is Advanced Strategies for your Hawaii VA Home Loan purchase, not VA Home loan 101. Let’s get into advanced strategies for utilizing your VA Home Loan Hawaii benefit.
Aerial panorama of the west coast of Oahu with Makaha Valley and Papaoneone beach. Hawaii, USA
What to do if you are tight on money for closing costs?
I want to provide a few options other than what lenders usually recommend, which is taking a higher interest rate for “lender credits”. This option should rarely be your choice unless none of the below apply to you and/or you are not able to take advantage of them.
The seller can provide up to 4% back to cover closing costs
As a VA buyer, you can ask the seller for a certain amount of cash back to cover the closing costs. 4% will almost always be well over the closing costs here in Hawaii. Further, in this seller’s market, it will be difficult to ask this when many offers are going over the asking price. This leads us to option ii.
After the seller accepts your offer, ask to increase the sales price by whatever amount you want them to contribute for closing costs. If you desire $7,000 and the accepted offer is $800,000, then ask to amend the contract to 807,000 with the seller giving you $7,000 towards closing. This is a simple way to roll your out-of-pocket closing costs into your VA Loan.
A twist on this method is to wait until the appraisal is completed. Providing the appraisal comes in higher than what you are under contract to buy the property for, ask the seller to increase the sales price to the appraised value and give you that money as a seller’s credit towards closing costs. Both options are dependent on the appraisal coming in at value.
If you have PCS’d recently and your savings are short, you can take a 1-3 month advance on your base pay within 30 days of PCSing or up to 60 days after your arrival at your new duty station. You just have to fill out the DD Form 2560 and submit it to your local comptroller officer for your 1-month advance. For 2-3 months you will need your Commander’s signature and approval from the comptroller’s office. One thing to note, this is only recommended if your debt-to-income ratio is low, meaning you have little debt. If you have a lot of debt, or you are buying a more expensive home, speak to a VA loan specialist to see if this is something you can do.
Buying your home as an investment? Why not buy a multi-plex with your VA home loan benefit?
If you are truly buying your home as an investment, and not something that will be a forever home, why not buy a multi-plex? You can buy a duplex, triplex, or quadplex with your VA home loan benefit. Often, the income generated from the other units will cover the mortgage and the VA buyer will essentially be living rent-free!
https://www.elithevaloanguy.com/wp-content/uploads/2022/01/VA-Loan-Program-Hawaii.webp506900Elias Halvorsonhttps://www.elithevaloanguy.com/wp-content/uploads/2022/01/logo.pngElias Halvorson2022-01-26 18:47:102025-05-03 15:04:37The VA Home Loan Program Benefits
So many times we have clients who apply for a streamlined refinance, but for whatever reason, they are hesitant to pull the trigger. Maybe their current rate is at 3.75% but doing a VA Streamline refinance or Hawaii IRRRL to reduce their rate to 3.25% isn’t that exciting, and potential clients are holding out for an even better deal. We have a lot of clients like this, and there is nothing wrong with this mentality. The key is to be ready to lock the rate you’re holding out for when that rate arrives.
Last month’s strike on US bases in Iraq by Iran brings up a subject many Mortgage professionals do not talk about; the importance of timing to our clients’ refinancing. For instance, a look at TLT an ETF that attempts to mirror bond prices. Taking a look at the chart, there was over a 3% swing in bond prices during the day. A person doing a refinance who took advantage of the swing this day would’ve saved thousands on their mortgage. Within 24 hours tensions had decreased and those rates had disappeared.
Of course, timing is important, but our clients waiting for better rates need to be ready to act immediately when a geopolitical event such as Iran’s attack occurs. If you are one of these folks on the refinancing fence, waiting for a certain rate then I suggest getting your necessary documents to your mortgage professional so they can lock when you are ready. For VA Streamline refinances (IRRRLs), documentation requirements are simple:
Mortgage statement
Mortgage payment history (proof of payment for the last 12 months)
Homeowner’s Insurance
Homeowner’s/Condo association bill
That’s it. Too easy! With the uncertainty in today’s current climate (coronavirus, impeachment, etc.), now is the perfect time to prepare for a drop in rates and take advantage of refinancing your home.
https://www.elithevaloanguy.com/wp-content/uploads/2022/01/Time-your-refinance-in-hawaii.webp506900Elias Halvorsonhttps://www.elithevaloanguy.com/wp-content/uploads/2022/01/logo.pngElias Halvorson2022-01-12 17:24:202025-08-26 16:00:07Using geopolitical events to time your refinance
I was planning on writing about the mortgage process, steps to best prepare for buying a home, etc. However, the recent Omicron variant has led to another, potentially the last spike down for interest rates before they start to march upwards.
A few reasons why people should refinance their VA mortgages now:
Lower your interest rate: This may be the last time to lower your interest rates and take advantage of near-all-time lows. The average home price is skyrocketing, why pay more $$$ towards interest than you have to?
Lower your monthly payments: Lowering your interest rate and lower monthly payments go hand and hand. Lowering your interest rate from 3.75% to 2.875% on a 700K loan will save $400+ a month. That is a car payment, more money for your IRA, etc. Why pay this extra interest to the bank!?
Eliminate mortgage insurance: With the massive appreciation over the last few years, many folks could already be sitting on over 20% equity. A refinance would allow them to reduce their interest rate AND eliminate mortgage insurance! That’s a no-brainer.
Pay off your home faster: Another option is to simply lower your interest rate and reduce the years on the loan. Taking the savings from your lower interest rate and applying it towards the principal balance will pay your home down faster. Or, you can simply lower the term on your loan — say you had 20 years remaining at 3.75% and reduced it to 15 years at 2.75%. The lower interest rate would negate some of the increase in monthly payments, and you would be paying your home off 5 years quicker. Personally, I prefer leaving mortgages at their original terms (or rolling them back to 30 years) as the increased cash flow gives you options to pay down your mortgage more quickly or do something else with your money.
Consolidate high-interest debt: Another option is to take out some equity to pay off higher-interest debt. This usually enables homeowners to increase their monthly disposable income considerably.
Wrap Up
There are many reasons to refinance now and I highly encourage homeowners who purchased and/or haven’t refinanced since February 2020 to look into refinancing. Refinancing usually requires no money out of pocket and can save homeowners significantly. Our C2 Financial team lends nationwide. Feel free to reach out for a free consultation with Oahu’s top VA mortgage broker to see if VA refinancing might be right for you!
Next week’s potential market-moving reports are:
Next week’s potential market-moving reports are:
Of course, timing is important, but our clients waiting for better rates need to be ready to act immediately when a
