Mortgage rates may never be this low again. So why are the numbers of people looking for mortgage loans or refinance loans dropping?
In the last couple months, we’ve seen mortgage rates hit rock bottom. Who knows if they will ever be this low again let alone stay this low for much longer. Yet these amazingly low rates still have not helped increase sales figures for homes lately. Why is that?
According to reports, the number of mortgage loan applications has dropped significantly in recent months. Just in the last week alone, the number has dropped by nearly 1.5 percent. Apparently, American consumers are simply passing on buying a home right now because of the uncertainty of the economy and the job market. Even though mortgage rates currently stand at less than 4.5 percent, few people are looking at home ownership as something they need to do right now. Instead, many people are choosing to pay off some of their debt and put some money in the bank in case something drastic happens to their finances.
But there are other reasons as well. The number of people wanting a refinance has also dropped despite the low mortgage rates. Some homeowners are turned off by getting an appraisal on their home in order to get a refinance. Appraisals aren’t cheap and paying for an appraisal does not guarantee that you will qualify for a refinance loan. In fact, many people pay hundreds of dollars to get an official appraisal of their home and then they are turned down for a home refinance loan.
Other homeowners are citing reasons like their bank continues to decline their refinance application because of other debt. It seems that, at least in some cases, the banks are looking for excuses to not refinance homes for people which is frustrating many homeowners who feel like they qualify for the historically low rates. Some say the reason they have not refinanced is because they have gone through the obstacles of applying online and nothing has happened. After hours of jumping through the hoops to apply for the refinance, many people find that they have wasted their time or they find that the loan provider isn’t offering them nearly as much money that they need to refinance. One homeowner said she has a score of over 800 and the bank only offered her about 60 percent of her home’s value.
Have you tried to get a mortgage loan or refinance your home in the last few months to take advantage of the current interest rates? What are some of the things you are running into when you do this? Let us know in the comments below.
Available APRs range from 6.35% - 14.90%*, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states.(the advertised APR includes a combined 0.25% discount for opting into a credit union membership (0%) and enrolling in autopay (0.25%) as well as payment of higher origination fee in exchange for a reduced rate, which is not available to all applicants or in all states). The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select five year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Rates change frequently so your exact APR will depend on the date you apply. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), manual notarization if your county doesn’t permit eNotary ($380), and recording fees ($0 - $315) and recording taxes, which vary by state and county ($0-$1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
Flexible terms, borrow $15K-$750K, redraw up to 100%
Use to consolidate debt or finance your next home project
Conditions… Variable APR of Prime minus 1.01% in all states. Min loan amount $10,000. Max loan amount $200,000. 30-year term. Annual fee waived for the first year. See conditions for guarantee at thirdfederal.com.
Third Federal rate are typically 20% lower than other leaders
Guaranteed Lowest Rate
No closing costs, prepayment penalties, or minimum draw requirements
Rates/terms are subject to change. All offers of credit are subject to credit approval. Applicants may be offered credit at higher rates and other terms. Property insurance (including flood insurance, if applicable) is required. HELOCs not offered in Texas. Membership at FourLeaf is required by opening a minimum $5 share account.
Rates shown are based on primary residence, minimum initial draw of $25,000 at account opening, monthly payments via automatic transfers from a FourLeaf checking/savings account, and borrower(s) inputs for credit score and Combined Loan-to-Value.
If borrower(s) qualifies for an intro rate, the intro APR is fixed for 12 months. After, standard APR is variable based on the U.S. Prime Rate, plus a margin, and is subject to increase. To obtain an intro rate, borrower(s) must meet credit/loan program requirements, including (but not limited to): 1) maximum CLTV of 75%, 2) minimum credit score of 720 3) initial draw of $25,000 and maintain this balance for 12 months, 4) monthly payments via automatic transfers from a FourLeaf checking/savings account, and 5) have not had an intro rate within the past 5 years. Loan amounts over $500,000 are not available for the intro rate.
The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable), and is subject to increase after consummation. The current standard APR ranges from 7.50% - 18.00% as of 4/16/2025. Not all applicants will qualify for the lowest rate. The minimum floor APR is 3.25% and maximum is 18%. Prime Rate as of 4/16/2025 = 7.50%. Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. Fees generally range between $500 - $15,000. Borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amounts over $500,000. Fees generally range between $500 -$60,000.
Tap into your home's equity & access the funds you need with a HELOC
Apply online or speak with a specialist
No application, origination & appraisal fees on lines up to $500K[3]
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