Updated April 8, 2020
“Academy Mortgage is committed to meeting our clients’ and partners’ home financing needs at the highest level of service, whether in-person in our branches or in virtual working conditions. At times like this, our goal remains the same: to deliver the dream of homeownership to as many families and individuals as possible. We appreciate the trust you place in us.”
—James Mac Pherson, CEO, Academy Mortgage Corporation
You’re probably wondering: How did the March 15 Fed rate cut and the coronavirus outbreak affect mortgage rates and/or my mortgage application or pre-approval? Here are 3 quick Q&As with all you need to know right now. We'll give you regular updates.
Q: How did the March 15 Fed rate cut affect mortgage interest rates?
A: The short answer is that Fed rate cuts do NOT directly affect mortgage rates. Each of the last three times the Fed cut their rate, for example, the immediate reaction in the mortgage market was that rates actually increased. Academy is constantly monitoring the changing mortgage rates. Meanwhile, we will keep you posted, but please feel free to call your Academy Loan Officer.
Read more about the Federal Reserve cutting their short-term borrowing rate to zero here.
Q: Will the coronavirus affect my pre-approval and loan application? Will loans close in a timely manner?
A: We’ve got you covered! Academy Mortgage is monitoring developments regarding the spread and impact of the virus. Academy will continue to process pre-approvals and loan applications in the quickest way possible. We have robust response plans and procedures in place to ensure that business operations go forward throughout the country, whether in our offices or by telecommuting.
Q: When is a good time to lock in a rate? Can I lock in a rate today?
A: Mortgage rates can change quickly. You can lock in a low rate for up to 180 days. Your Academy Loan Officer can advise you of the best time to lock.
Due to the COVID-19 outbreak and the resulting market instability, some loan programs are currently unavailable. Please consult with your Loan Officer regarding your individual situation.
THE LATEST FED RATE CUT: 5 Scenarios to Help You Know What to Do
Here are 5 different scenarios that will help you know what to do to be prepared:
- If you are currently in process with an existing/locked loan application: If you've already locked, you're lucky! Consider yourself very fortunate to be locked. There should be zero change to the terms of your loan.
- If you are thinking about buying a home: As we always advise clients, your decision about whether to buy a home should be based on a more wholistic view of your personal needs and timing, and not based on the gyrations of the market. If your timing to buy a home coincides with a low interest rate period, that’s fortunate—and if not (you buy during a higher rate period), you can always refinance when rates are more favorable.
- If you are thinking about refinancing your current mortgage: Our advice is to get your application completed (if you haven’t done so already) in order to put yourself in a position to lock your rate if/when rates do come down, because IF there is a drop in rates again, lenders will likely be overwhelmed once more and will not have time to do anything except help the clients who are already ready to go.
- If you just recently took out a new mortgage, since Jan. 1, 2020: A bird in the hand is worth two in the bush. Keep your information and documents handy, and sit tight to see where things go from here.
- If you bought a home or refinanced in 2019, prior to Jan. 1, 2020: Prepare yourself and your documentation/application to take advantage if rates do in fact drop over the coming weeks/months (see #3 above).
If you have additional questions, please call your Loan Officer or our corporate office at (800) 660-8664.
See our COVID-19 Resources page for even more up-to-date information on other questions you may have.