October 22, 2020 | Market Update

Market News 10-23-2020

Mortgage Market Update

Turn Your Home’s Equity into Cash

A cash-out refinance can take advantage of today’s rates and free up funds for other endeavors. Since you will be paying mortgage interest, invest in projects that can appreciate over time, such as home improvement, paying off high-interest debt, building your investment portfolio, buying an investment property or second home, or setting cash aside for emergencies.2

Investigate Refinancing for Big Monthly Savings

Homeowners who refinance at today’s rates are saving an average of $297 per month on their mortgage. Borrowers in Hawaii, Washington, D.C., California, New York, and New Jersey have reported monthly savings – up to $483 per month. Most lenders will want homeowners to have at least 20% equity in their home and a good credit score to qualify, making 43% of all 30-year mortgage holders eligible to apply.3

Investing to Maximize Profits

Real estate investing can be highly lucrative for your clients if they choose properties wisely. List a property’s pros and cons, and then determine the actions required to mitigate downside and maximize upside. Right now, housing with one to four units – batches of townhomes or duplexes where each unit has its own entrance – appeal to consumers’ desire for more space and are less risky than large apartment complexes.5

Sources: 2The Mortgage Report, 3Realtor Magazine, 5USA Today