By Anessa V. Cohen
Camp is now over. The kids are all home and scurrying to last-minute family vacations, back-to-school shopping excursions, or medical checkups before school is in full swing.
These last two weeks of August usually mean real-estate closings, one after the next, for those who purchased homes over the summer, or it’s a quieter time for buyers looking for new homes. This is also a time when those homeowners who did not get around to refinancing try to squeeze in a fast refinance for new capital or lower rates before the yamimtovim. I like to call these last two weeks of August “refresh and reload” time.
The guy who called for refinance information back in June but put everything on hold while he vacationed has suddenly realized that the summer is nearly over and he never got around to preparing the necessary paperwork for his mortgage application.
One homeowner wanted to refinance and take money out to do renovations when rates were low, but he could not decide how much money to take out because he never reached a final decision of what construction was to be done. Suddenly it’s the end of the summer, and the months in which he intended to complete these plans just passed him by.
There are so many reasons that many homeowners wanting to refinance–even those who are anxious to do so–somehow get delayed with the actual process of starting a mortgage application. But now, as the summer ebbs, they suddenly realize that there is only about four months left till the end of the year; if they end up not refinancing until 2016, they will be facing a whole new list of paperwork–in particular, new tax returns.
Whereas during the last year or two we have been in a great position with extra-low interest rates, which have been in place long enough to spoil us for any changes that might be in the wind, another issue to consider before refinancing is that it seems as if the Feds are looking to start raising the interest rates.
Rates have already started to creep their way up over the summer, albeit in a slow crawl, so many refinancing and noticing the change in rates have not complained but just sighed, “OK, still not so bad!” It looks like we are getting close to the prime rate being raised, though the amount is not known right now, and toward more fluctuating rates. Needless to say, anyone needing to refinance but putting off applying for a rainy day should apply immediately. The rainy day is approaching and you want to open the umbrella before the higher rates come pouring down!
Anyone who needs assistance with refinancing is welcome to call me.
Anessa Cohen lives in Cedarhurst and is a licensed real-estate broker and a licensed N.Y.S. mortgage broker with over 20 years of experience, offering full-service residential and commercial real-estate services (Anessa V Cohen Realty) and mortgaging services (First Meridian Mortgage) in the Five Towns and throughout the tri-state area. She can be reached at 516-569-5007 or via her website, www.AVCrealty.com. Readers are encouraged to send questions or comments to anessa@AVCrealty.com.