Southwest Florida homeowners capitalize on lower interest rates
Across the country, interest rates are down and homeowners are rushing to refinance their home.
Bob Vaughn, a mortgage broker, has had a busy week. He has gotten many phone calls from homeowners looking to refinance after the Federal Reserve cut interest rates for the first time since the 2008 recession.
“We’ve probably had more inquiries in the last week,” Vaughn said, “than we have in the last three years.”
But, Vaughn said some homeowners would benefit from refinancing more than others. He points to people who acquired a home between January 2018 and February 2019.
“If you bought a house in that period of time,” Vaughn said, “that is the window where it would really make sense for you to refinance because essentially rates are almost 1% lower than they were then.”
People who should not refinance include those who could not afford a higher monthly payment or the upfront closing costs. The lower interest rates are also useful for new buyers.
Caroline Doan, a real estate agent from BEX Realty, told WINK News she is busy talking to people who traditionally rent, hoping to capitalize on the low rates. Lower interest rates usually mean the property is more affordable.
“We actually speak to probably 20 potential renters a week or more,” Doan said. “They are now starting to look at, more recently, purchasing opportunities.”