For new financing, renewals, or refinances, Dalia suggests considering a one-year fixed or a variable/adjustable rate mortgage rather than a long-term fixed product. This positioning allows you to benefit from expected rate cuts on the horizon. However, she emphasizes that your final decision must be made within the context of your personal financial situation and property plans.
Only if you hold an adjustable-rate mortgage. If you have a variable mortgage with a fixed payment, there is no guarantee your monthly payment will decrease. You must check your specific lender’s policy, because the allocation beneath the surface may simply shift between interest and principal rather than lowering your required payment.
Fixed rates dropped over the weeks prior to this recording as bond markets reacted to credit uncertainty following the collapse of Silicon Valley Bank and Credit Suisse. This created an unusual inverted environment where one- to five-year fixed terms became cheaper than the five-year variable rate.
Consider increasing liquidity by setting up a secured line of credit or increasing an existing one. You should also restructure any expensive debts now, which will enhance how your balance sheet looks for any future financing needed under tighter lending guidelines.
