Experts: No need to rush to refinance

Consumer

In this week’s Show Me the Money report, President Trump suspended all foreclosures and evictions until the end of April last week. That came on the heels of the Fed lowering interest rates to nearly zero which will likely cut borrowing rates even further for things like mortgages.

So, should you be rushing to refinance or get a new mortgage?

These are historic lows for mortgage rates and because of that there’s increasing demand to take advantage. Experts say that drop in mortgage rates could help first-time homebuyers and those looking to refinance, but there’s no need to rush.

Experts say you won’t miss out and they actually recommend waiting after the initial wave of high demand.

“Lenders are absolutely inundated right now. There’s a traffic jam to get on the mortgage refinancing highway, so if you put in a mortgage application now, you’re going to have to pack your patience now because it’s going to take quite a while before they get to you,” Greg McBride, Chief Financial Analyst at Bankrate said.

Experts say if you’re in the market for a new home focus on building your savings first. Social distancing may keep both home buyers and sellers from going to shop or sell, essentially putting the real estate market on hold.

The interest rate cut affects more than just mortgages. It also impacts credit cards, car loans, and deposit accounts.

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