Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Shmuel has over two decades of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. Shmuel provides a uniquely holistic approach to comprehensive real estate and financial matters that goes well beyond any single transaction. Shmuel is an award-winning financier recognized for maximizing the short-term and long-term objectives of his client. As a contributing writer to many local and regional newspapers and publications, his insights have been featured in the media for many topics, including mortgages, personal finance, appraisals, and real estate trends.
The recent international turmoil caused by “Brexit” has been a tremendous blessing for those in the United States who have been indecisive about their mortgage financing. The 10 year U.S. Treasury, one of the leading barometers of mortgage rates has reached historical lows, the likes of which we have never witnessed. Despite strength in stocks and equities, the mortgage-backed security and bond market is in unprecedented territory, and is proving to be extremely lucrative for those who are now taking action. I urge all readers to take advantage of this historical opportunity to capitalize on some of the lowest mortgage rates we might ever see.
Market Misconception
The preconceived notion is that it is only worthwhile to pursue a refinance if the rate is now 1 or 2% less than what you currently have on your existing mortgage. Those barometers are totally inapplicable these days. When working with local lenders who have the resources to get deals closed quickly and efficiently, closing costs are relatively low compared to national averages. Depending on your loan balance, a refinance with “full cost” can be done for as little as two thousand dollars. Furthermore, there are programs offered by certain lenders, which are certainly available at Approved Funding, that offer absolutely no closing costs whatsoever – making a refinance worthwhile even at a minimal rate savings.
Not Only Rate Driven
With all the information available online about mortgages and interest rates, it still amazes me how much lost opportunity exists for people who don’t even consider refinancing because they assume it is not “worthwhile”. Statistically, there are millions of eligible mortgagors who can benefit one way or another by refinancing their existing mortgage. Most people treat mortgage financing as a psychological conquest more than as a financial tool that should be utilized in tandem to one’s overall financial situation. There are many reasons why someone should opt to refinance their current mortgage – from obtaining a lower interest rate, to shortening the duration of their loan, to switching loan types, to tapping into home equity – just to name a few. The reasons are countless, and make most sense when they are custom-tailored to an individual’s current short-term and long-term financial objectives and considerations.
Industry Focus
Personally, I think the mortgage industry is too focused on either calling attention to their flashy new apps that will supposedly make the loan application process smoother or better, or trying to defend the negative press that brokers have earned during the financial crises. Countless dollars are being spent to remove the negative stigma of mortgages in general, instead of focusing on the tremendous opportunities that are available through the mortgage as a financial vehicle. As an example, there are several major industry leading mortgage lenders who spend a fortune advertising their website and services who offer rates, fees and terms that are consistently worse than the market. Unfortunately perception is sometimes the reality, and if a company is successful in spite of the benefit to the consumer – more often than not, people will value the brand instead of branding the value!
The Opportunity
Refinancing is as much about your goals and objectives as it is about interest rate and market conditions. Rather than making sweeping assumptions about whether it makes sense or doesn’t make sense to refinance, it is advisable to closely examine the current specifics of your situation before you can make that determination. Approved Funding offers a variety of proprietary and comprehensive analysis that can easily show you the many variables of consideration so that you can make an accurate decision about all of the benefits of refinancing your mortgage. With our “Approved Analysis” software we are able to do a complete analysis of your current mortgage and other financial obligations to maximize your short term and long term financial objectives.
Real Time Access
Mortgage Rates are extremely volatile and these opportunities are sure to be short-lived. Interest rates change daily, if not multiple-times on a given day. Savvy consumers are taking advantage of this great opportunity to position themselves financially, and save tens of thousands of dollars along the way. It behooves everyone to explore their options with a competent and professional local mortgage lender who has their finger on the market. For anyone who is looking for free advice without any obligation or pressures – I highly encourage you to reach out to me to explore the myriad of financial opportunities that may available to you.
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