How much do you know about mortgage rates or the mortgage market right now?
If you’re looking to buy a home or refinance, it can be a whole lot to take in.
To guide us through it all, we spoke with Kevin Miller, CEO of Texas Lending, and he’s going to help us get started with a little true-and-false quiz.
True or false: Buying points lowers your interest rate?
“You know, by law, buying points is supposed to buy down your interest rate, so if you are paying points, you should be getting lower rates. That’s true,” Miller said.
A 15-year mortgage saves you money over a 30-year mortgage, right?
“Fifteen-year rates are much lower than 30 rates right now, so that is true,” Miller said.
And zero closing costs save you more money than a lower interest rate. True or false?
“I would say that’s false -- and it’s depending on how long you’re going to be in the loan,” Miller said. “Sometimes if you pay the closing costs to get a lower rate, you’re going to save money over time.”
Does refinancing impact your credit score?
“If you just refinance a house, it’s not really going to impact your score, but if you do a whole lot of other things like refinance your furniture, your automobile, your plane, your yacht, all at the same time, your credit score is going to go whack,” Miller explained.
There’s been a lot going on with mortgage rates recently. So, what’s the latest? What’s in store for mortgages and the mortgage market?
“We saw all-time lows last year,” Miller said. “Then rates came up a little bit. ... Some rates went up half a percent. Your 30-year mortgages went up about a half percent, 15-year mortgages maybe went up a quarter of a percent. But they’re starting to come back down. They’ve started to edge back down. And people need to take note because you got to take advantage now of these rates.”
Say I need some cash of cash-out refinance or a second-home equity loan. What’s the difference?
“In Texas, a cash-out refinance is a home equity loan,” Miller said. “If you’re just refinancing your house, you can get cash out. Texas considers that a home equity loan. You can get a second lien. A second lien home equity loan could be a little bit different. With rates so low right now, sitting about four, four and a quarter. And if you did refinance your cash-out, you can drop your rate and get cash. And so those are about the same thing. A cash-out refinance in Texas is a home equity refinance in Texas. The rates are great right now.”
Texas Lending provides a broad assortment of home and refinances mortgages, including refi cash-outs, home equity, purchase, VA, FHA, USDA, reverse mortgage, jumbo and conventional loans. The group also offers a series of online calculators and comparison tools to assist customers with their mortgage selection.
“We have some of the lowest, if not the lowest refinance rates in the state of Texas,” Miller said.
To learn more about mortgage loans or refinancing your home with Texas Lending, click or tap here.