The recent 0.50 basis point Fed rate cut has set the mortgage market buzzing, and we’ve been flooded with calls and emails from clients wanting to know their refinancing options. If you own an investment home with a mortgage rate between 7% and 8.5%, this post is specifically for you.
For Investment Homes – Hold Off for Now
We can refinance your investment home and likely bring your rate down to around 6.99%. However, refinancing comes with costs—typically between $3,000 and $6,000. My advice: wait. Here’s why:
The Fed is expected to cut rates again on November 7 and December 18. These cuts will likely lower the 10-year Treasury yield, which directly influences mortgage rates. As a result, the spread between the 10-year yield and 30-year mortgage rates will shrink. This means that waiting until later this year could allow us to lower your investment home rate even further—potentially with no loan costs.
By waiting just a few months, you could save thousands of dollars in refinancing fees and lock in a much lower rate for your investment property.
For Primary Homes – Refinance Now
While I recommend holding off on refinancing investment properties, if you’re looking to refinance your primary home, my advice is different. You should refinance your primary home now. Here’s why:
- Primary home mortgages will also drop in the future, but the good news is, we can refinance your primary home every 6 months at no cost.
- Since there are no prepayment penalties on your primary home refinance, there’s no reason to wait. You can lock in today’s rate and refinance again when rates drop further—without incurring any additional costs.
The Risk Factor for Investment Homes: Should You Wait?
Of course, there’s always a risk that rates could increase even after a Fed rate cut. Mortgage rates aren’t guaranteed to move directly with the Fed’s actions. While I believe waiting is the best option for your investment home, the ultimate decision is up to you.
If you prefer to lock in a lower rate now, we can help. But if you’re willing to wait, you could end up saving even more. Either way, we’re here to support you, whichever choice you make.
Why Long-Term Relationships Matter
When rates drop and everyone scrambles to refinance, things can get hectic. We’ve seen it before—during previous rate cut periods, we had to stop accepting new clients to ensure our existing clients got the attention they deserve.
More than 4 million people will try to refinance over the next two years. Rest assured, we’ll always have time for you because you’ve been with us. We value our long-term relationship and will be here for you whether you choose to refinance now or later.
Final Thoughts
For investment homes, waiting until later this year is probably the smartest move to save on refinancing costs and get an even lower rate.
For primary homes, don’t wait—refinance now, knowing you can refinance again every six months without penalty when rates drop further.
If you have any questions, don’t hesitate to reach out. We’ll continue providing personalized advice to ensure you’re making the best financial decision for your property. Let’s navigate this rate frenzy together—when the time is right, we’ll be ready to help you secure the best deal possible.
📍 206 Rockingham Row, Princeton, NJ 08540
☎️ 877-545-8626
📧 help@jumboloanexperts.com