Tag Archives: Refinancing

May 2020 Podcast Video, Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our May 2020 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

May – 2020 Video (YouTube)


Financial Planning Tip  –

Mortgage Rates

Looking at the chart of the 10 year treasury, we can see rates have finally settled and we are hearing the volume of lenders overflow has calmed as well. While the 10 year is not an exact predictor of Mortgage Rates it is loosely correlated.

Now may be a good time to check your Mortgage Rate and consider refinancing!

Here is one of our favorite and most popular posts on the items to remember when you are getting a mortgage and especially when you refinance.

5-29-20 10 year us treasury

The Virtual Pivot

In true making Lemonade from Lemons fashion, not only have we been able to access the John Mauldin event, with over forty hours of speakers, but a National CFA(Chartered Financial Analyst) event and several others were completed virtually.

We have so much awesome information to share in the coming weeks…. oddly, that we would have not had access to if they had been held live!

Looking forward to sharing…. tons if info!!

Capital Market Comments – They Came Out!

The Look Through Continues

With current earnings being less than stellar, you may ask why the markets are clawing their way back?

It does appear investors are looking through the valley and attempting to price in what a recovery may look like.

The Tuesday after Memorial Day offered multiple openings across the country…. Wall Street wiped its brow as people came out!

Expect bumps, and headline shocks, both positive and negative … but that’s why we are happily conservative investors at heart!

5-29-20 YTD SP 500 Small Cap International

Have a Great Day – Talk to you at the end of June!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

Mortgage Rates Reach ALL TIME LOW According to Freddie Mac … Get Ready, but Wait (days, not weeks) to Pull the Trigger …

As the experience notches in the belt gain in quantity, we have learned the follies of attempting to PREDICT or FORECAST events …. luckily we gave a soft “heads up” that rates MAY be in our corner due to the Corona Virus, and help with longer term Mortgage and other longer term fixed interest rate loans ….

Freddie Mac Reports Lowest Mortgage Rates EVER

According to Freddie Mac….

“The average 30-year fixed-rate mortgage hit a record 3.29 percent this week, the lowest level in its nearly 50-year history. ” 3-5-20


Here is the deal…. rates fell AGAIN in the most recent week due to fears of Economic slowdown from the Corona Virus…. but maybe TOO FAST for Mortgage and other longer termed Fixed Rate loans to adjust … On Friday, after the above rates were calculated, the 10 year Treasury, our guidepost for rates, dropped another 22 Basis Points or almost another 1/4 point ….. 

Far right, the 10 year treasury yield fell like a rock as fear stoked investment from across the globe…. yesterday for the first time it took a breather as bonds fell and rates rose…no matter, these are Low Low Low rates!

3-10-20 Ten year treasury

Reach out to your bank, Mortgage Broker, or other refinancing officer, and get your documents in order … begin the qualification process but WAIT (days, not weeks) just a bit and check with your loan professional before locking that rate as it is likely the recent drop in rates has not yet dripped through the loan system…. hopefully better loan rates may be in our very near future…

Here is your friendly reminder on Refinancing or not:

“Think 18 months cost break even – We like to have the saving from the refinance cover the cost of the refinance within 18 months – i.e. Person with $30k mortgage at 5% probably would not need to refinance to 4%, but a $3 million mortgage may be smart to refinance from 4.25% to 4% or the like, if the numbers work out.”

Here is the complete Post which contains 11 items to remember when refinancing!

Take advantage of what cards we are dealt!

Have a Great “All Time Low Rates” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

A Wild Ride……….Interest Rates .. AGAIN….

Probably the only thing tougher than determining where interest rates are headed, are the folks trying to refinance mortgages as the interest rate roller coaster continues.

We watch rates closely and have spoken recently about the falling rates with concern. Since we visited the subject, rates have not only turned tail and spiked higher, but then in true decisive form turned back in Armageddon flashing fashion again.

Here is an updated chart of the 10 Year US treasury yield.

For now we are chalking this up to low trading volumes associated with the late summer doldrums. Summer is almost over and trading volumes should pick up over the next few weeks. We will keep you appraised, but for now call us carefully watchful!

Have a Great Monday!



8222 Douglas Ave Suite 590

Dallas, TX 75225


Time to Re-finance Your Mortgage? It Might be!

After Ben Bernanke’s recent message to investors that the Fed will purchase maturing Mortgage Backed Securities (MBS) as opposed to taking the maturing funds out of the system,  interest rates have taken a dive.

Mortgage Savings ?

The Fed is further attempting to stimulate the housing market and give current, and new home owners a break with lower rates in the form of lower mortgage payments.

Take the Gift and Act Now !

We have been very pleasantly surprised at falling interest rates and feel anyone with a sizable mortgage (Greater than $100k) may want to review the possibilities of re-financing while rates are so low (this may change in the future…a subject for another time.)

Current rates for longer term mortgages (30 year fixed) are in the mid to high 4% range in the Texas area and finally jumbo or non-conforming loan rates are also lower.

A Few General Thoughts (not recommendations, only suggestions)

  • Eclectic Mortgages are mostly gone, i.e. Interest Only and negative amortization; If you have this type of mortgage, be sure to carefully review your current mortgage costs versus your new, you may already have a good plan for your situation.  
  • Refinancers’- Attempt to keep the cost of your refinancing versus your monthly savings approximately 18 months or shorter (Cost of refinancing / Monthly savings =< 18 months if possible)
  • If you intend on being in your home for the foreseeable future, think strongly about a 30 year Fixed mortgage, rather than a 15 year mortgage, as you can add extra payments to accelerate your mortgage, but back off on the extra if needed.
  • Put your patience hat on; The mortgage qualification process has changed dramatically, is more complicated, and requires more disclosures than ever before; Take your gift, but remember do not kill the messenger, many requirements are beyond your lender’s control.
  •  If you are uncertain on your future residence or know you may be moving, don’t despair as your new home will hopefully be financed with the current excellent rates.

In closing, we cannot express enough, patience, patience, patience! Be prompt with your requested documents, and do not kill the messenger, loan financing is sometimes a stressful situation, you are both on the same team.

Please consult your loan professional before acting, these statements are not meant as an automatic recommendation to refinance your mortgage, each situation is unique.

Have a Great Day !