It’s no secret that mortgage rates overall have been very low in recent years. However, rates have decreased further in the last month due to the recent economic challenges brought on my COVID-19. FHA refinance rates, and all rates for that matter, have been bouncing off history low levels.
April 2020: Mortgage interest rates are extremely volatile right now due to many issues in the secondary markets and capacity limits. We have seen FHA 30 year fix rates in the high 2% range one day, then increase nearly a full percentage point in during the course of a few days.
FHA Refinance Specialist Jeff says: The drastic swings in interest rates over the last month is something I have never seen in my 20 years in the mortgage business. The key is for eligible borrowers to get their application approved and then wait for the right time to lock their interest rate. Your loan specialist can advise you on the daily, and sometimes muti day interest rate movements.
Homeowners with 30 yr interest rates near 4% may have a window of opportunity to reduce their mortgage payment, in some cases saving hundreds of dollars each month. If you have been thinking about refinancing, now might be a perfect time.
Homeowners should note that FHA mortgage lending standards have recently tightened up, all due to recent economic changes caused by Coronavirus. Many lenders are requiring 660 and even 680 credit scores for both FHA purchase and refinance transactions. Even though FHA’s internal credit requirements haven’t changed, many lenders are adding their own “overlays” and restrictions on top of FHA’s guidelines.
MORE: homeowners can learn more about the recent stricter FHA lending highlighted by Forbes.
FHA still offers both rate reduction and cash-out refinance transactions. Cash out refinance transactions are generally limited to 85% loan to value. However, many lenders have temporarily set caps to 80% loan to value in light of all the recent changes.
Simple rate reduction refis (no cash out) are still streamlined, with limited documentation and no new appraisal required.
To learn more, please contact us 7 days a week by calling the number above. You can also submit the quick Info Request Form on this page for fast service.
Serving buyers across Florida including Jacksonville, Orlando, Tampa, Miami, West Palm Beach, St. Petersburg, Gainesville.