If you’re thinking about buying a home or refinancing your mortgage in California, you’ve probably heard about the upcoming reductions in federal interest rates. Experts are predicting a drop of around 0.25% to 0.5%, with rates expected to continue decreasing into 2025. This is great news for both potential buyers and current homeowners, but it’s important to approach these changes wisely.

What These Rate Reductions Mean for You

Lower interest rates can lead to significant savings over the life of a loan. For homebuyers, it means you could qualify for a larger loan or enjoy lower monthly payments. For current homeowners, refinancing at a lower rate could reduce your payments, eliminate mortgage insurance, or shorten your loan term.

However, with these upcoming rate reductions, you might see an increase in cold calls from solicitors and other mortgage companies trying to rush you into making a decision. While it might be tempting to act quickly, jumping into a purchase or refinance too soon could mean missing out on even better rates in the near future.

Why Timing Matters

Since rates are expected to keep dropping into 2025, waiting for the right moment could save you even more money. But how do you know when the time is right?

This is where working with a trusted local mortgage professional, like myself, Erin Facha, comes in. My goal is to ensure that you’re in the best possible position, whether you’re buying a new home or refinancing your current one. I’ll take the time to understand your unique situation and recommend the best course of action, so you don’t miss out on potential savings.

The Bottom Line

While the upcoming rate reductions present a fantastic opportunity, it’s crucial to navigate these changes carefully. Don’t let high-pressure sales tactics push you into a hasty decision. Instead, work with a local expert who understands the market and has your best interests at heart.

If you have any questions or want to discuss how these rate changes could benefit you, feel free to reach out to me, Erin Facha, at IMS Lending. I’m here to help you make the most informed decision for your future.