January 11th, 2014 3:01 PM by Eric Fang
Recently I completed a few 15 yr fixed rental refinance.I think there are various reasons:
1)For the last a few years, borrowers did the loan with30 yr fixed so that they can have maximize capacityfor the purchase. When they found that it is hard tobuy more properties, they would like to have 15 fixedrate, which is still lower than their 30 yr fixed rate,so that they can payoff the mortgage fast.
2)Some borrowers wants to cash-out some money for futureinvestment. Either to purchase more property, orto invest the money into stock market.
3)For certain areas, the property values were "under-water"for a long time. And their rate of 30 yr fixed is above 5%,and refinance to a 15 yr fixed program is very wise and good option.
To help my clients to have a better idea about the 15yr fixed rate trend, here are a few of the cases of the ratesscenario:1)Closed one loan around July 24 with rate 3.625% for 170k rental loan.2)In August, Closed one loan of 300k primary with 15 yr fixed 3.25% around August 14. Closed another of 240k with rate of 3.5%for primary around August 26.3)Earlier Oct, closed one 360k rental loan with rate 3.625%.This was a cash-out loan.4)In Nov, closed two primary loans with 3.125%; one with 3.25%.5)Will close a few rental refi with 4% this month.
If you review the 10 Yr Note chart, the best time to lock therate around Sep 15th to Nov 15t; or before August 15.And the current level is almost the highest in the past two years.
So some rates might be gone forever, like 15 yr fixed 3.125%primary; 15 yr fixed 3.625% for the rental. If you have thesame need, talk to a professional to see the best rateyou can get.