Interest Rates

All Rates Are Expected to Go Up in 2022!!

posted in: Mortgages

For those of you who are still on the fence regarding a decision as to eliminating MI from your mortgage payment, what I am telling you now may help you decide to refinance with 7th Level Mortgage TODAY! According to a CBSN report this morning, there will be THREE rate increases in 2022. I have said this repeatedly; while you are waiting for an additional 1/8th of a percent drop in rates, you very well could find yourself losing a better rate than you have now, forgoing the opportunity to get rid of un-needed mortgage insurance premiums monthly, and finally the ability to afford yourself a much more comfortable 2022.

Since late 2019, all through 2021 and 2022, the federal government has put supports in place to avoid a complete meltdown of the economy. Those days are quickly coming to an end because firstly, people are finally going back to work and secondly the supports that are in place will expire because they are no longer needed.

Some of the more common objections are as follows:

My rate may be higher than what it is now.

While that may be true, If your loan to value on a conventional conforming loan is no larger than 80%, your mortgage insurance premium will be eliminated. Over time, that amount of money you will be saving because huge. The availability for mortgage insurance as a tax write-off expired in the 2020 tax year. That means that deduction is NO LONGER AVAILABLE. The interest paid is tax-deductible. It makes no sense to keep paying mortgage insurance when you could have a lower payment, a tax deduction on the interest you pay, just so you can have the ability to claim you got a rate that only is affording you a slightly lower payment thaw hat can reasonably be locked in to now.

Oh no, I have to pay closing costs…AGAIN!

To this objection, I say the big picture is more important than the closing costs. First of all, the average homeowner keeps their mortgage for an average of seven to ten years. You should be able to recuperate those costs in a little over one and one half to two years. That is because life happens while we are busy making other plans. You may need to refinance again to cash out equity to pay other recurring bills in that time frame or lower the payment due to other life events that we cannot predict right now. Moreover, you will skip a months’ mortgage payment and any money in your current escrow account will be refunded to you. Because of the hike in rates that is sure to come, can you afford to wait to call 7th Level Mortgage?

What about the time I would lose paying on my current mortgage?

If you have lived in the home, you haven’t, in reality, lost anything. You have, albeit a small amount of equity built up and because you have been current with your mortgage and other monthly recurring debt payments, will qualify for a better rate, no mortgage insurance, and the opportunity to pay off other debt.

What about my high-interest rate credit card debts?

This economic environment supports cashing out now. The loan limits will go up on January 1st, 2022. Secondly, your credit cards may be maxed out during the holidays (so you know those bills will be due soon) and according to the report, three key interest rates WILL go up in 2022. What I can say is that it makes no sense to gamble with this market hoping for an additional 1/8th of 1 % drop in rates when you will lose much more than that. The loan officers at 7th Level Mortgage are trained for just this type of market and are eager to hear from you soon. Keep also in mind that if you have all your paperwork and information handy at the time of application, it will make the application processes faster and you could close by the middle of January! Finally, if you have any questions that the loan officer can’t answer right away, your processor and others at the company can help you to avoid unnecessary delays. Don’t wait…call TODAY!