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After the drop in mortgage rates, there has been a lot of talk lately about buying now and refinancing later.
of course he is If Mortgage rates really do fall at some point in the near future.
There’s no guarantee that they will, but if inflation calms down, we could soon see a return to more reasonable interest rates.
And he’ll support marrying home, dating rate supporters who believe it’s better to buy now while rates are high.
After all, if rates drop again, the home-buying race could heat up fast.
enter navy federal no-ref rate drop
While there is an argument for buying now and refinancing later, there is still an annoying mortgage refinance involved.
And even though rates are low, there are downsides to refinancing. For one, it is time-consuming and paperwork-intensive.
There are also closing costs involved, stress, and of course you need to qualify for the thing. There is no guarantee if your status changes. Or if house prices fall, etc.
To ease this concern, select lenders are offering to waive the fee on subsequent refinances if you use them for a home purchase loan.
But this still requires the borrower to go through the entire home loan process a second time. Not fun.
That’s where Navy Federal Credit Union’s “No-Refi Rate Drop” comes in. They have taken both great cost and trouble out of it.
As the name suggests, you can refinance your high-interest rate mortgage into a lower-rate mortgage without refinancing.
This way you can take advantage of low mortgage rates without all the hassles and hassles and closing costs.
And it seems super easy, apparently just to sign a document.
how it works
If you buy a home and use Navy Federal to get your mortgage, keep an eye out for lower mortgage rates.
After six consecutive monthly payments, you can take advantage of their no-ref rate drop if they drop at least 0.25% below your current rate.
For example, if your current interest rate is 7%, and rates drop to 6.75%, you can take advantage.
In addition to being required to make six payments, you must also be current on your loan with no 30-day delinquent payments within six months of the rate drop request.
Additionally, your loan must be a Homebuyer’s Choice, Military Choice or 15- or 30-year jumbo fixed-rate loan.
Note that cash-out refinances are not eligible for the no-ref rate-drop option, nor are adjustable-rate mortgages.
Assuming you fit the criteria, and the rates are low enough, all you have to do is call them to start the process. If eligible, they will send you a document to sign within five business days.
Simply return that signed form and $250 payment and your new lower rate will take effect within 30-60 days.
They say you’re guaranteed to get that mortgage rate the day you call, similar to a traditional mortgage rate lock.
So it doesn’t matter if the rates go up during the process of your application.
What’s more, as long as you’re eligible, you can lower your rate several times during the loan term and pay the $250 fee each time.
Another advantage is that your loan tenure will remain the same. So if you request two years out of a 30-year loan term, you’ll still have 28 years left.
It will not increase the loan term like a standard refinance.
Is the drop in the no-ref rate a good deal?
As always with promotions like this, you have to use the company now for the promise of future, potential savings.
In other words, if you don’t initially use Navy Federal, you won’t get the benefit of the no-ref rate drop.
This means you need to compare loan rates and fees with Navy Federal versus other options.
If you plan on using them regardless, this is an added benefit that may or may not come to fruition.
If you’re deciding between them and other lenders, you’ll need to consider whether this potential advantage is in their favor.
Of course, while mortgage rates may not fall in the future, there’s no guarantee that they will.
But if they do, a mere $250 fee seems like a pretty good value to lower your rate by 0.25% or more.
Not only economically, but also time saving.
Read more: Can You Lower Your Mortgage Rate Without Refinancing?
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