The number of homeowners looking to refinance their homes soars

On Behalf of | Mar 13, 2020 | Refinancing

Mortgage interest rates dropped to historic lows here in the United States earlier this week. The end of the drops may not be over either.

It wasn’t long after 30-year fixed mortgage rates dropped to between 3 and 3.375% this past Monday that lenders started receiving an uptick in calls.

These calls came from both first-time homeowners and long-term ones alike. The latter were calling to have their existing loans refinanced. Some of the ones that had already applied for refinancing were simply calling to see if their new loans could be refinanced at the lower rate.

Many homeowners have spent the better part of the past week considering if refinancing their mortgages may be ideal in light of these reduced interest rates.

A spokesperson for the federally-funded mortgage loan company Freddie Mac notes that their research shows that as much as $4 trillion worth of home loans could stand to be refinanced in light of these recent drops in recent rates. A Mortgage Bankers Association (MBA) spokesperson points out that lenders are only equipped to handle around $2 trillion in business each year right now though.

MBA data shows that there was a 224% hike in mortgage applications last week over this same time last year. Industry analysts argue that this significant increase in applicants is going to result in it taking longer for mortgage lenders to underwrite loans. Right now, most major lenders are taking about six weeks to complete this process.

Many Georgia homeowners have been motivated to refinance their existing mortgages in the past few days in hopes of locking in more competitive rates. An attorney can advise you of the pros and cons associated with renegotiating your interest rate with your lender and aid you in the closing process on your Augusta home.