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'Marry the house, date the rate': If rates drop, refinancing options at low-, or no cost

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Posted at 8:04 AM, Oct 26, 2023
  • If interest rates drop, home buyers have low- or no cost refinancing options
  • One program at a local credit union offers free refinancing, with conditions
  • Even as interest rates climb, a local realtor urges prospective homeowners to buy if they find the right home

Makenzie Sadowski is in the real estate business.

But she was not looking for a home for her own family, until perfection went on the market.

"Perfect location, perfect house, smack-dab between my mom and dad," said Sadowski, a realtor in Marinette.

She purchased the home in Marinette County, even as interest rates continue to climb.

But current home buyers, facing the highest average mortgage interest rates in more than 20 years, according to Freddie Mac, have options for no- or low-cost refinancing if rates go down in the future.

"We do offer low-, or no-closing cost refinance" options, said Tanya Sushkova, a co-owner at Cornerstone Mortgage in the Green Bay area.

Across I-41 from Cornerstone is CoVantage Credit Union, which also offers a no-closing cost refinance option for members who get a mortgage through the credit union right now.

If interest rates decrease by one percent or more within 18 months after a home purchase, CoVantage members can refinance the loan with no closing costs, said Justen Wegter, CoVantage Credit Union mortgage sales manager.

"I would say to our members, 'If you're looking at buying something in the near-term... let this be a little bit of hope for you...and give you a little bit of security for the future,'" Wegter said.

If a home buyer finds a house they love, they should buy it despite the current higher rates, said Megan Sullivan, another realtor in Marinette.

"Marry the house, date the rate," she said, alluding to the prospect of future refinancing if rates drop.