Brexit for Breakfast, yum!
So what does England withdrawing from the European Union mean for the mortgage and real estate market?
Well, as I’m sure you’re already aware, we have had a massive sell-off in the stock market. The money that used to be invested in stocks, is now running to the safety of bonds. With the increased demand for bonds the price of bonds increases which, consequently, pushes the interest rate, or yield, of those bonds down. In turn, this translates into lower mortgage interest rates. So if you are buying a home or refinancing your current mortgage right now, your timing could be no better. Lower interest rates means lower payments and increased savings, something everyone loves! Additionally on the real estate side, these lower interest rates will increase your purchasing power and will allow you afford a higher-priced home without an increase in your monthly payment! The old adage that it only makes sense to refinance if you drop your interest rate by 1% made sense in the “old” days when most mortgage loans were around $100,000. But, most people have mortgage loans ranging from $300,000 to $600,000 and even .500% drop in interest rates could save you tens of thousands of dollars. So, for a free mortgage loan consultation to see if refinancing might make sense for you, or how much more purchasing power a lower rate will provide you, give me a call or shoot me an e-mail!
Craig Sutliff, The GreenHouse Group.