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Does mortgage refinancing make sense this fall? Here’s why it could
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With decades-high inflation finally showing signs of waning, the Federal Reserve is likely to finally implement a long-anticipated rate cut at its upcoming September meeting.
Although the Federal Reserve doesn’t have direct control over mortgage rates, lowering the benchmark rate is widely expected to reduce the high mortgage rates that have frustrated would-be home buyers in the post-pandemic era.
With a lower mortgage rate comes new opportunities to refinance a home loan at a competitive cost. While refinancing isn’t right for everyone, there are some situations when homeowners should seriously consider making this move, even now. Below, we’ll break down three of them.
See how low of a mortgage refinance rate you could secure here now.
3 reasons to refinance your mortgage this fall
Not sure if a mortgage refinance is the right move for you now? It can be if any of the following three scenarios apply to you:
You could reduce your rate if you locked in at the peak
Mortgage rates peaked at an average of 7.79% during the post-pandemic rate surge, according to Freddie Mac. They’ve already begun coming down off those highs and it’s now possible to get a mortgage rate under 7%. While refinance rates tend to be higher than rates for new loans, there are still opportunities to save by refinancing.
“This fall is a good time to think about doing a refinance if you are locked in at the peak of the rate market,” advised Sarah Alvarez, Vice President of Mortgage Banking at William Ravies Mortgage. “We see rates anywhere between 100-200 basis points off the peak, which can translate to significant savings. Just make sure you do the math and factor in how long it will take you to start realizing the savings once you take closing costs into consideration,” she said.
The average closing costs on a mortgage refinance loan are approximately $5,000, according to MyHome by Freddie Mac. If you borrowed $450,000 in 2022 at 7.79% and can refinance to a new loan at 6.33%, you could save $492 monthly. The monthly savings you’d realize would pay off the $5,000 in closing costs in just over 10 months, so as long as you weren’t planning to move before then, it would be worth going forward.
For some borrowers, even the current refinance rates have already provided an opportunity to lower costs. “Rates dipped in early August and for many of our clients who got in homes when rates were around 8%, the drop was enough to make refinancing worthwhile,” Fred Bolstad, Head of Retail Home Lending at U.S. Bank said. “If we do see a similar drop, there will be more borrowers who make the decision to refinance.”
See if a mortgage refinance makes sense for you now here.
You could get your refinance done more quickly
The anticipated rate cut in September could help to revive the faltering refinance market, which has seen fewer new loan originations in the current high-rate environment. However, some homeowners waiting to refinance likely won’t come off the sidelines this fall because they anticipate rates will drop further.
“Mortgage rates are going to decline over the next year or more as the Fed reduces the Fed Funds rate for a period of time,” according to Melissa Cohn, Regional Vice President at William Raveis Mortgage. “The right time to refinance will extend well beyond this fall.”
Still, waiting for rates to decline further may not pay off for everyone. If you can get a lower mortgage rate right now, each month you delay is another month you’re paying more than you should. That adds up if you’re sitting on the sidelines waiting for further rate cuts, especially as the Federal Reserve’s next meeting post-September won’t come until November.
Banks may also be inundated with applications after repeated rate declines, which could add time and stress to the process. Taking action this fall, however, could allow you to beat the crowd.
“You will benefit from a period where banks are not as slammed, Alvarez said. “When rates come down over the course of the next 12-24 months and volume increases, the amount of time a refinance will take will increase as purchases are often prioritized over refinance in the underwriting process.”
You could accomplish other financial goals
For many homeowners, securing the absolute lowest rate isn’t the ultimate goal of refinancing, so it may be better to act sooner rather than later.
“Homeowners refinance for a variety of reasons, such as the need to borrow additional funds, consolidate debt, deal with the end of an adjustable rate resetting, and, of course, to obtain a lower rate,” Cohn said.
If you have pressing goals, those may justify taking action this fall rather than delaying further in hopes of a better future loan offer.
“Consumer debt is at its highest levels of all time,” according to Ralph DiBugnara, founder and President of Home Qualified. “This consists mostly of high interest rate credit card debt. With interest rates potentially coming down, this would be a great time to consolidate debt by refinancing. Credit card debt has averaged in the range of 20-25%, so a mortgage rate in the 6% range could offer huge savings depending on the size of the consumer debt.”
The bottom line
Ultimately, borrowers must consider the big picture and their own financial goals when deciding whether to refinance this fall or wait. That’s why Bolstad recommends connecting with a mortgage loan officer to explore your options and make the most informed choice. A loan officer can provide insight into the refinance terms currently available so borrowers can see just what a refinance could do for their financial lives.
Learn more about your mortgage refinance options online today.
When Huntington Beach, Calif., detectives searched Rodney Alcala‘s Seattle storage locker during the murder investigation of 12-year-old Robin Samsoe in 1979, they discovered a cache of photos, many of them young women in suggestive, and even pornographic poses.
In March 2010, after a third jury in 30 years handed Alcala a death sentence, Huntington Beach police released more than 100 of those photos hoping to identify the women and some children, and learn if Alcala claimed still more victims.
Most of those who have been identified are alive and well.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Huntington Beach Police Dept.
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified people in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified person in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
San Francisco Mayor London Breed conceded the mayoral race to Daniel Lurie Thursday afternoon with a social media post that congratulated her competitor.
The mayor also thanked the city and its residents for “the opportunity to serve the City that raised me” in the post on X just after 4:30 p.m. Thursday.
There had been rumblings that Breed might concede the race earlier Thursday having come in behind Lurie in the last vote count released Wednesday morning.
“Today, I called Daniel Lurie and congratulated him on his victory in this election,” the post read. “Over the coming weeks, my staff and I will work to ensure a smooth transition as he takes on the honor of serving as Mayor of San Francisco. I know we are both committed to improving this City we love.”
Breed spoke at a press conference less than an hour after the social media post to answer questions from reporters about her decision, reiterating some of what she said in her social media post.
“The city is on the rise. The office is bigger than just one person, and I called Daniel Lurie earlier today to congratulate him,” the mayor said. “And made it very clear my team and I stand ready to support him during his transition. We will always do everything we can to ensure the success of the city and that there is a smooth transition, so that the important work that has been done and needs to continue in San Francisco moves forward.”
When asked if this was the hardest speech she’d ever given, Breed quickly dismissed that idea.
“No, it’s not. There’s been other harder speeches. I mean I had to make a hard decision to close the city down during a global pandemic. I had to deal with…the racial reckoning that happened after the tragic death of George Floyd. I had to go out in the middle of the night and tell people that Mayor Ed Lee had passed away. There are numerous occasions.”
Six years ago, incumbent London Breed became the first Black woman to serve as mayor of San Francisco after the death of Mayor Ed Lee in late 2017. The then president of the San Francisco Board of Supervisors was automatically appointed as the city’s acting mayor early the morning after Lee’s death.
In June of 2018, Breed won the special election that was held to fill the office, defeating her main opponent, former state senator Mark Leno.
Breed faced a number of major challenges during her first term in office, including the COVID-19 pandemic, the city’s ongoing issues with drug abuse and homelessness, rising housing costs and a spike in retail crime that some chains cited as the reason behind closing stores in San Francisco.
While Breed has touted progress in reducing the number of homeless encampments and pushed programs to fill vacant business spaces downtown, the mayor’s struggles have led to 11 other candidates entering the race to challenge her for the job.
“Over the coming weeks, I plan to reflect on all the progress we’ve made. But today, I am proud that we have truly accomplished so much and my heart is filled with gratitude,” Breed’s message said in closing. “During my final two months as your Mayor, I will continue to lead this City as I have from Day One – as San Francisco’s biggest champion.”
Daniel Lurie has announced that he will speak to the media about the latest developments Friday morning.
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