Monday, 06 April 2020

“Interest”-ing: Low Rates and Refinancing

Written by Posted On Tuesday, 20 August 2019 04:45

Trade Tensions and Stock Scares:

In yet the latest escalation of trade tensions between China and the United States, this past weekend President Trump announced America will impose a 10% tariff on $300 billion of Chinese goods and China responded by suspending its purchase of US agricultural productsand lowering the value of the yuan, its currency, to its weakest point since May 20, 2008. The increased retaliation from both countries, coupled with the Federal Reserve bringing interest rates down last week, caused the Dow, a major stock market index, to plunge 900 points and saw the S&P 500 and NASDAQ, also major stock market indices, off by around 2%.

Trade Tensions and Stock Scares

Mortgage Implications:

Late last week, these factors made investors flock to the relatively steady bond market, which pushed the yield on the 10-year Treasury down sharply, resulting in lowered interest rates. According to Mortgage News Daily, the average rate on the popular 30-year fixed mortgage hit 3.70% on Friday, the lowest value since November 2016. That rate will presumably lower, as bond yields drop even more.

Simply put, last week’s drop means that over 8 million people who have a 30-year mortgage could qualify for a refinance and even save at least 0.75% off of their current interest rate by doing so. There are several components to contemplate before deciding to refinance.

What to Consider:

A recent CNBC article looks over three factors when analyzing whether refinancing a residential or commercial mortgage makes sense: the ability to earn back investment, the seasoning of the loan, and the impact refinancing will have on other financial goals. Once those points are considered, looking towards the ways to refinance is important as well.

Mortgage rates

For instance, residential and commercial property owners can refinance using a conventional loan. With property values increasing in many areas, the amount of equity (the difference between your current mortgage and the current market value of your home) one has also increases, which makes it easier for you to refinance. Others can determine whether an FHA (Federal Housing Administration) loan is more suitable, because even if you have little or no equity in your home, a low credit score or higher debt than most lenders generally accept, the FHA guarantees that private lenders will be repaid should you default, which means banks and private lenders make loans that they ordinarily would not at competitive rates that can substantially cut your monthly payments. Furthermore, millions of veterans, as well as those in the National Guard, active duty members, and the reserve, are eligible to refinance with VA (Department of Veteran Affairs) loans.

Here to Help:

At the end of the day, taking advantage of low mortgage interest rates remains an “interest”-ing option for many people. As stated by Ben Grabsoke, president of Black Knight Data and Analytics, “Lower rates have also increased the buying power for prospective homebuyers looking to purchase the average-priced home by the equivalent of 15%, meaning that they could effectively buy $45,000 ‘more house’ while still keeping their payments the same as they would have been last fall.” In other words, increasingly favorable rates allow consumers to both refinance their mortgages and purchase affordable homes, which is definitely something to keep an eye on.

From the Trenches,

Roy Oppenheim

Oppenheim Law
2500 Weston Rd #404,
Fort Lauderdale, FL 33331
954-384-6114
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: https://www.oppenheimlaw.com

 
Originally posted on South Florida Law Blog: “Interest”-ing: Low Rates and Refinancing  https://southfloridalawblog.com/interest-ing-low-rates-and-refinancing/
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Roy Oppenheim

From Wall Street to Main Street, Roy Oppenheim is a successful serial entrepreneur and attorney focusing on Florida real estate, foreclosure defense, loss mitigation and Internet ventures.

 

He founded Oppenheim Law in 1989 with his wife Ellen Pilelsky and uniquely positioned the Firm as one of Florida’s leading boutique law firms in Weston, Florida.

 

Serving national, international, and local clients, Mr. Oppenheim has the highest rating (A-V) conferred by Martindale Hubbell Law Directory, the most respected directory of lawyers and law firms in the U.S.

 

In 1989, Mr. Oppenheim also co-founded and served as general counsel to ShopSmart Corp., the company that originated and owned the GNC Gold Card Program, a program that continues to this day and was one of the first cross-promotional programs of its kind.

 

In addition, in 1994, he co-founded Weston Title & Escrow, the oldest title company in Weston, Florida, and he currently serves as its Vice President. In 1999, Mr. Oppenheim served a one-year term on the board of directors for Catalina Lighting, a publicly traded company on the New York Stock Exchange.

 

Growing up in the Bronx, Mr. Oppenheim learned to be focused on success and driven to always persevere for opportunity.

 

In 2009, he started the South Florida Law Blog, which was voted the best business and technology blog by the South Florida Sun-Sentinel. He also serves as an expert witness on title industry practices.

 

Mr. Oppenheim has also authored two law review articles with Jacquelyn Trask; namely, Deconstructing The Black Magic of Securitized Trusts, published in the Stetson University Law Review’s Spring 2012 Edition, and The Emperor’s New Clothes, published in the William & Mary Business Law Review Volume 6.

 

Today, Mr. Oppenheim is a sought-after legal expert on issues relating to the real estate crisis and beyond. In addition to his own blog, he also has been a contributor to Yahoo! Homes, and featured on HuffPost Live, FOX News, and Lifetime TV. In addition he has been quoted in prominent national publications, including USA Today, The New York Times and Huffington Post, among others. Mr. Oppenheim also understands the power of social media, and can be found on a variety of social media platforms.

 

Mr. Oppenheim also speaks fluent German.

 

Admissions

 

  • Florida Bar, 1987; Member of the Real Property Probate and Trust Law Section
  • New York Bar, 1987; United States District for the Southern and Eastern Districts of New York, 1987
  • U.S. District Court, Southern and Middle Districts of Florida, 1993

 

Education

 

  • Princeton University, A.B., cum laude, 1982
  • Northwestern University School of Law, J.D., 1986
    • Member of the Northwestern University Law Review
    • Member of the National Moot Court Team

Original source:  https://www.oppenheimlaw.com/who-we-are/meet-our-team/roy-d-oppenheim-esq/ 

https://www.oppenheimlaw.com
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