The Federal Reserve just announced there might only be two rate cuts next year. With 10-year treasury yields currently around 4.5%, does it seem like mortgage rates will stay around 7% during 2025?
Rates might go up, down, or stay the same in 2025.
Whitney said:
Rates might go up, down, or stay the same in 2025.
True that. I locked in a rate early last September when everyone said rates would keep dropping. I secured a 30-year conventional loan at 5.5%, no points. Rates jumped back over 7% shortly after.
@Dani
I regret not locking in at 5.875% when I had the chance. Now it’s at 7.125%. The savings would have paid off the refinance costs in less than a year.
Jonah said:
@Dani
I regret not locking in at 5.875% when I had the chance. Now it’s at 7.125%. The savings would have paid off the refinance costs in less than a year.
I wish I had put the mortgage only in my name. Now that my wife moved out, I have to refinance to remove her from the mortgage.
@Ridley
You might be able to change the deed with your county instead of refinancing. That’s what my title company suggested.
Denny said:
@Ridley
You might be able to change the deed with your county instead of refinancing. That’s what my title company suggested.
That’s possible, but why would an ex agree to remove their name from the deed without also removing their responsibility for the loan?
@Ridley
You don’t have to refinance to remove her unless it’s specified in your divorce decree. You could use a home equity line of credit to settle accounts. If the loan’s in your divorce decree, it won’t count in her debt-to-income ratio when she buys her next home. Just use a warranty deed, it’s about $150 at the title company to remove her name from the deed. I’m a certified divorce lending professional and can help.
@Peyton
My mortgage company insisted on refinancing to remove her from the mortgage. You’re saying it’s possible to keep her on the mortgage but have the divorce decree absolve her of responsibility? We’re on good terms and I don’t want to complicate things.
@Ridley
Also, I don’t need a home equity cash-out; I can manage the equity split without it. I’m comfortable with the current payments on my own. If there’s a way to avoid refinancing from my current rate of under 3% to 6.8%, I’d greatly appreciate advice.
@Ridley
Consider a mortgage assumption to transfer sole responsibility while maintaining the original loan terms. This might not be possible with all types of loans, though.
Ripley said:
@Ridley
Consider a mortgage assumption to transfer sole responsibility while maintaining the original loan terms. This might not be possible with all types of loans, though.
That option isn’t available with my conventional loan from 2020.
Jonah said:
@Dani
I regret not locking in at 5.875% when I had the chance. Now it’s at 7.125%. The savings would have paid off the refinance costs in less than a year.
It’s unpredictable. People were sure rates would drop, but they went up instead.
Jonah said:
@Dani
I regret not locking in at 5.875% when I had the chance. Now it’s at 7.125%. The savings would have paid off the refinance costs in less than a year.
I also got hit by an escrow shortage on top of everything else.
Jonah said:
@Dani
I regret not locking in at 5.875% when I had the chance. Now it’s at 7.125%. The savings would have paid off the refinance costs in less than a year.
How could the refinance have paid for itself in just 10 months?
@Taj
He means the savings from the lower interest rate would have covered the refinancing costs in that time.
@Taj
Exactly, the savings from the lower rate would have offset the refinancing costs in about 10 months.
Jonah said:
@Dani
I regret not locking in at 5.875% when I had the chance. Now it’s at 7.125%. The savings would have paid off the refinance costs in less than a year.
I made the same mistake, thinking rates would drop even further after two predicted cuts. I won’t miss that opportunity again.
@Dani
Did you get your mortgage through a credit union?
Finch said:
@Dani
Did you get your mortgage through a credit union?
No, I went through Chase but had a rate match from a broker. This was three months ago, and I’ve closed since then.