Ramsey Show Host Jade Warshaw Says 'Wait Until After The Election To Refinance Your Home,' That This Isn't The Last Rate Drop

With the recent Federal Reserve rate cuts, many homeowners wonder if now is the time to refinance. After all, this decision has lowered mortgage rates to the lowest in about two years, making it much more tempting if you're locked into a higher rate. But, according to personal finance expert and Ramsey Show co-host Jade Warshaw, waiting might be worth it. 

Don't Miss:

• Beating the market through ethical real estate investing' — this platform aims to give tenants equity in the homes they live in while scoring 17.17% average annual returns for investors – here’s how to join with just $100
• These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends

In a recent guest appearance on Fox Business, Warshaw discussed the recent rate cuts and their implications for personal debt from credit cards to mortgages. While the rate cuts might entice some to go further into debt by taking out loans or credit with lower rates, Warshaw said the only consumers who benefit from this right now are those in the market to buy a home. 

Along that same line of thinking, Warshaw warned those thinking about refinancing their homes to hold off for a beat. "If you bought at the height of rates, you are itching right now to refinance," she told Fox Business. "But I do think it’s worth it to wait."

---

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

---

She said those wanting to refinance don't necessarily have to wait a long time, but it would be wise to wait until after the election to see where all the chips fall. She also touched on the fact that refinancing is expensive.

According to Bankrate, refinancing a mortgage can cost between two and five percent of the new loan. For a $244,498 loan – the average American's mortgage debt – you're looking at anywhere from $4,800 to $12,225. And that's just on the average. Costs could also be associated with the refinancing application, origination and home appraisal fees. 

The Fed's recent rate cut was its first since March 2020, and more reductions are expected through 2025. According to Freddie Mac, the average 30-year fixed mortgage rate recently fell to 6.08%, the lowest in two years. However, predictions suggest rates could dip even further, potentially reaching the mid-5% range by the end of the year.

---

Trending: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!

---

Interest rates could be further impacted by the upcoming election. According to Warshaw, election cycles can influence economic policy and interest rates, so it's smart to make big financial decisions like refinancing after the election. 

It's also worth noting that while the Fed's rate cuts have led to slightly lower mortgage rates, other lending products such as credit cards and auto loans have not seen the same level of relief. The reduction in credit card APRs has been minimal, offering only modest consumer savings. So, while mortgage refinancing may become more favorable in the coming months, it’s important not to overextend by taking on new debt in other areas.

If you’re considering refinancing or purchasing a home, keep an eye on the market, especially as more rate cuts are expected. By staying informed and patient, you may secure a better financial future with lower rates and fewer expenses.

Read Next:

• Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $100.
• Groundbreaking trading app with a ‘Buy-Now-Pay-Later' feature for stocks tackles the $644 billion margin lending market – here’s how to get equity in it with just $500