Interest rates plummeted last week around the globe, as investors contemplate the possibility of Britain leaving the EU, the so-called Brexit.
Yields have gone negative on German (first time ever) and Swiss bonds (negative across the whole yield curve), which is the clearest sign of what a topsy turvy world we're living in now.
Even a modest reversal of interest rates is going to lead to trillions of dollars in losses for bondholders around the world. But nobody knows when that day is coming, so for now we may as well take advantage of the situation.
I know of one large financial institution that refinanced a luxury home loan at just 3%.
They'll want you to deposit substantial assets to get a rate like that, but it may be worth making the move. If you'd like an introduction to that lender, please call me at (480) 442-7325. I receive no compensation from lenders, happy to help.
Overall, here's what I'm seeing that may help as you contemplate refinancing: - Credit unions are the easiest to deal with, with some of the most flexible underwriting and lowest down payments. Their rates are generally in the middle range of the market. Navy Federal is the largest, and I recommend joining them to all who are eligible, and that's anyone who has served in the US military or who is related to someone (living or deceased) who served. You can join the credit union for a deposit as little as $5.
- Large investment firms will do incredibly cheap rates for borrowers with stellar credit, and who bring substantial assets to the firm. The key is to work with someone in the firm who knows how to work the system and has closed aggressive loans. It takes a lot of work to get the rock bottom rates, and most people within those organizations don't know how to push the right buttons.
- If you don't fit the "cookie cutter mold" that banks love to see, getting a loan from a major bank is still a painful process. Best to work with a mortgage broker and let them do the brain damage for you. There are smaller banks throughout the country that are easier to work with, but finding them and understanding their underwriting criteria would be a full time job. My clients have used one particular mortgage broker quite successfully on numerous transactions.
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Cities are in, suburbia is out.
So say the Wall Street Journal with some compelling statistics to back it up. Young, wealthy people simply do not want to live in a bedroom community with chain restaurants and malls. Urban living now sells for a premium, and suburbia at a discount.
While Phoenix doesn't have one single urban core, we have certainly seen a clear pattern since the last downturn in real estate: people will pay a premium to be near the action.
There are three areas in the Phoenix metro area that offer the best urban living, where one can walk or take public transport easily: downtown Phoenix, downtown Scottsdale, and downtown Tempe.
This is one more reason why Paradise Valley remains the most desirable community for luxury homes, and is likely to remain that way for many years. All three of those urban centers are within easy reach of PV. However, North Scottsdale nice though it may be, doesn't have proximity to any of them -- and it's why the average age of residents is considerably higher there. |
