Why Realtors Say "Buy Now, Refinance Later" Is 2024 REALLY the Best Time to Refinance a Home?

Welcome to "Real Estate Talk," a podcast hosted by Robert Keilman and Joshua Britt, two seasoned licensed real estate agents and investors from the Hampton Roads area of Virginia.* - In Episode 12, we have a conversation about mortgage refinancing with special guest Sherry Reid, a senior loan officer with OVM at AnnieMac Home Mortgage with over 30 years experience in the business!

Realty Estate Agents and Mortgage Loan Originators, loan officers, will often tell people to “Buy Now, Refinance Later”. Often, I think we as professionals in the Real Estate business fail to explain the process to consumers. Many are just going through the mortgage process for the first time or has never refinanced a home before and may not know all the steps involved in the process or what it could mean for their current mortgage balance as well as their monthly mortgage payments.

2024 is going to be a great year to refinance a home, with interest rates expected to be much lower than their high’s from Q3-Q4 of 2023. The anticipation of lower interest rates comes in the wake of Federal Reserve Chairman Jerome Powell’s announcement to reduce the federal funds rate down by 75 basis points or 0.75%.

While Powell is being bearish on reducing interest rates in 2024 due to lingering concerns about a possible recession in 2024, some Wall Street Investors are speculating that the interest rate by 150 basis points or 1.5%.

Whatever the interest rate will be, 2024 will almost certainly have lower interest rates for consumers. This is a much needed relief as Americans are experiencing inflated costs on everyday necessities and consumer credit card debt has reached an all time high!

Sherry advises that if a consumer can get a savings of at least 1/2 a point or 0.50%, that they should seriously consider refinancing their mortgage.

Current mortgage interest rates are already tracking lower in anticipation of the Fed reducing its interest rates in 2024.

In this podcast, we also dive into some of the myths about refinancing, the benefits of refinancing a home, and the seasoning requirements for conventional, FHA, and VA Home Loans.

Seasoning on a conventional home loan is 12 months while VA loans are eight months. The VA loan benefit, exclusive to active duty service members, Veterans, and surviving spouses has the Interest Rate Reduction Loan, also known as the IRRL or VA streamline loan. It is the best refinance options in existence as an IRRL must show a significant savings to the member in order for it to be applied.

People refinance their homes for many reasons. Some do it to get a lower monthly mortgage payment while others may do a cash out refinance loan to tap into their equity to use as a down payment to purchase another property or to use those funds for renovations or repairs.
#realtors #RealEstate #BuyRealEstate #RefinanceRealEstate #Podcast

Chapters

0:00 Intro - No Explanation of Why!
2:00 What is Refinancing / Benefits
4:46 Current Market Trends Affecting Refinancing
6:32 Lender Margins and Why Different Lenders Offer Different Rates
7:39 When to Refinance
9:26 Expect Lenders to Advertise to You in 2024
10:47 Myths About Refinancing
11:15 Interest Rate Reduction Loan for Veterans
15:19 Adjustable Rate Mortgages Only for Financially Savvy People
20:30 Junk Fees Explained
21:46 Seasoning Requirements Explained
24:40 2024 Interest Rates Will Go Down
27:52 Reverse Market Crash
32:30 Outro

Opinions expressed on the Real Estate Talk Podcast are of Joshua Britt and Robert Keilman's own. Opinions are based on experience obtained through working with numerous home buyer and seller clients as well as personal real estate investment deals.

Britt and Keilman are licensed real estate agents in the state of Virginia at Prodigy Realty. We operate throughout the Hampton Roads area of Virginia which includes Virginia Beach, Chesapeake, Norfolk, Portsmouth, Newport News, Hampton, Williamsburg, Suffolk, Yorktown, and the outlying areas of James City and York County.

We support Equal Opportunity Housing!

Keilman and Britt are retired U.S. Navy Veterans. Thank you to all who have served and continue to serve!
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