AMARILLO, Texas (KFDA) - With interest rates dropping, banks throughout Amarillo are seeing more homeowners come in their door for the same thing.
This has allowed them to save money on their houses like never before.
When interest rates drop, homeowners tend to refinance their homes, allowing them to pay less credit back to the bank.
A loan officer at Citizens Bank was asked if he could compare a time in the past to this one, he couldn’t...
“Never, we’ve never seen anything quite like this. We’ve seen rate drops before, we’ve had minor refinance booms, but we’ve never seen rates drop this dramatically,” said Jonathan Hale ,mortgage loan officer at Citizens Bank.
Hale says these rates have been averaging at three percent or lower and they are the lowest he has ever seen.
A loan officer at the Amarillo National Bank says the last time these rates were so low was in 2012, but it hasn’t come close to 2020.
She says the number of new loans they’ve given out starting in May has tripled, benefiting tons of Amarillo homeowners.
“Depending on the term that your looking to refinance, you could save hundreds of thousands of dollars over the life of your loan,” said Kelsey Lankford, mortgage loan officer at Amarillo National Bank
Lankford says less than 20 percent of the bank’s mortgage department’s business came from refinances, now it’s at 45 percent.
A majority of homeowners have been able to roll over their closing costs as well.
“Typically, you will have enough equity in your property where you can roll your closing cost into your loan. So, we try to make sure the customer brings less than a 100 dollars to closing if that is a possibility. It all kind of depends how long they’ve been in the home and what kind of equity they have, but typically they are able to roll a closing cost in,” said Lankford.
Lankford and Hale both expect the government to keep interest rates low for a while.
“They’re kind of expecting interest rates to stay low to 2021. I do expect the volume, I don’t know if it will stay exactly where it’s at, but they do expect it to be pretty high at the end of the year,” said Lankford.