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.