04/08/2024
This is what we have been waiting for...Validation that the "marry the home and date the rate" wasn't just Marketing B.S. The consumers and our clients that could afford to take the plunge over the last 24 months are generally sitting on more equity and are well positioned to refinance.
Some of the conversations will inevitably circle around when to refinance if rates continue to drop. This is where our Mortgage Under Management solution comes in to play. The first step is to identify how much savings do you need to make it worth your while, assuming the refinance doesn't cost you anything. But the savviest consumers understand the need is identify where to allocate the money you save and learn what the future impact will be.
You may want to keep making the higher payment to take years off the mortgage. But the smart money move may involve taking the savings and allocate it into something that has a rate of return of 6-7%. While paying off debt earlier sounds attractive, in most models we do letting the money compounds results in a higher net worth overall.
