How Will Loans Change in 2014?

by Stephanie Sims


Nationally, it’s been rumored that the refinancing market is dying, but that’s not so in Atlanta.

According to loan officers in the Atlanta area, homebuyers who took out adjustable rate mortgages a few years ago are now refinancing those loans. Those ARMs are nearing their expiration dates, and now they are wondering if they should lock in a 30-year fixed rate loan or opt for a different loan. Even buyers who have FHA loans with private mortgage insurance have refinancing options. Aaron Pelaske, a loan officer with Guaranteed Rate, says that there are a plethora of options for buyers to take advantage of a mini refi-boom.

“Most consumers believe they can only get rid of PMI if they add 80 percent loan-to-value, but sometimes we can completely waive PMI and even get them a lower rate,” he says. “You have to pay attention and be nimble on market movements. Some buyers have blinders on and narrow-mindedly look at what’s in front of them, but if people locked in a high rate and the market dropped at four and a half, they could possibly refinance.”

“As fixed rates increase, conventional offerings may lead to competitive five-, seven- and 10-year ARM options with very competitive pricing,” says Greg Janicki, regional sales leader at Metlife Home Loans. “Although refinancing is down significantly from this time last year, it is by no means dead.”

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