People's Home Equity - Refinancing a Home During Uncertain Times

Bruce Dodd of People's Home Equity goes over the risks and benefits of refinancing a home and other financial decisions during this uncertain time of the coronavirus pandemic.

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[Music] in today's local business spotlight we're answering a question that a lot of people have right now it's an uncertain time and we don't know what to do with some of our financial decisions here to give us the answers that we need is mr. Bruce Dodd with people's home equity Bruce thanks for joining us all right million dollar question are you ready I'm ready how are rates looking when it comes to purchasing a home refinancing a home what are the rates doing right now and what in the world are they gonna do in the next coming weeks okay so right now rates have have dramatically improved over the last couple of days there is a misconception mr. black that the federal government controls the federal government takes actions that they hope will drive interest rates into a specific direction people may have read a couple weeks ago they'd lower their rate to potentially zero that's the rate at which banks borrow money overnight to coat to cover checks from the federal government what drives mortgage rates is the mortgage-backed security market and so mortgage-backed security market like all other financial markets has been in a big state of flux what happened was a couple weeks ago or we can have ago people stopped buying mortgage-backed securities in at the level that they normally do and so what's happened is the federal government stepped in and then started buying mortgage-backed securities so what that's done is that's driven rates down so people with really good credit right now we're gonna see better rates than we've had for a while now now for people that have some credit challenges the markets being kind of punitive to them right now from a worker former aide standpoint so I would say to those folks you need to get with us or give us some money and see what we can do about improving their credit scores but for most people they're gonna see rates are very good right now perfect now I want to add this on Bruce is this a time for you know the people you mentioned that may not have the best credit is this a great opportunity for them to work on that well I think that I think that it's always a good time to try to improve the credit situation but a lot of people may be sitting at home and it's an opportunity to take a look and see what options they have sometimes it's very small things can make a big change in credit score it's a little silly that we're going to judge somebody at a credit score that's five points or ten points less different from an interest rate perspective that's kind of silly because it's the same person but that's just the way the world works right now perspective so you just have to know how the game is played yeah it's credit score is very important right now all right brace tell us how people's home equity is adapting I mean obviously you're still open for business people are still giving you a call what do we need to know if we need to get in touch with you to work through these issues well the great news is we went through some software changes about a year and a half ago and so really our entire platform is built on people being able to work remotely and so my team is doing the exact same except they've always been able to do our phones our network so they can answer them at home I'm still at the office because a lot of screens at my desk that I work built using so I'm kind of your mama self but my teams still working we're all still working our phones are still being answered 43 five nine one nine eight zero one during normal business hours somebody's going to answer your call right away you're really not going to be able to tell that folks are working from from the comfort of their home and perfect well and in for viewers and for potential clients for you I mean it's something that we can do from the comfort of our home as well and we don't have to worry about anything either all right Bruce thank you so much for keeping us confident during this uncertain time I know we're gonna talk to you again here in just a few weeks in the meantime ladies gentlemen you can always give them a call at four to three five nine one nine eight zero one or visit them online to get started chat mortgage.com [Music]