Mortgage Blog

The Fed Opens the door -- The question is : would you wait?

June 4th, 2019 2:58 PM by Eric Fang

Fed Chairman Jerome Powell signaled an openness to cutting interest rates, pledging to keep a close eye on trade fights between America and its largest trading partners. Powell, under pressure from President Donald Trump to ease borrowing costs, said “we do not know how or when these issues will be resolved.” 

Here is the story, I have a client who kept asking me for the rate. His rate is 4.375%, and then he said that he would refi when the rate is 4%. When it reached 4%, he said that he would like to wait for 3.875%; when the rate was 3.875%, now he would like to wait for 3.5%.

Here is my explanation, there is a cost while you wait. Let's assume you can get 3.5% Sep 2020. And when you get the rate, and another 16 months already passed. I wrote a blog a about 10 years ago. It still works here, only the rate in the example was much higher than the current market rate, here is the link:
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Posted by Eric Fang on June 4th, 2019 2:58 PM



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