By John Aretos, CEO of Police Mortgage
Rates seem to be starting a new paradigm in that we’re now in a period where rates are likely going to start declining. Anyone who was looking to buy a home and had problems with qualifying is now going to find that it might be a little bit easier to qualify. Those folks should definitely keep an eye on rates and start inquiring sooner rather than later, whether that be with a patrolman credit union or another trusted financial institution.
As far as the purchase market is concerned, there’s still an inventory issue. Certain areas of our country may start seeing more properties become available but that is far from guaranteed. However, the market will adapt and you might see lower real estate prices as well. That combined with the interest rate environment could create a bit of an opportunity for some buyers.
There also may be an opportunity for others to refinance. If you obtained a police home loan at the top of the mortgage-rate market because you had a need to move into a new home, this would be a good time to speak with us at Police Mortgage again.
If you’re thinking about refinancing because you have a higher rate loan, it’s never a problem to inquire and get a preliminary rate quote. I’ve always said that a good deal is what a person feels is a good deal.
For example, if I have a mortgage at a 7% interest rate with a $300,000 mortgage balance and someone offers me 5.99%, do I really want to wait until rates drop to 5.75%? Am I willing to risk rates going back up a little bit to miss the opportunity to get below 6%? If rates are 1% lower or more from your original mortgage rate, then you probably need to seriously look at the possibility of refinancing.
For those who are borderline, i.e. holding a mortgage with a rate above 6%, they may have to wait before refinancing makes sense. In that case, you may have to wait for 30-year fixed-rate mortgages to hit 5.5%. We may not be that far away from that.
If you have been thinking about buying a home recently, and you want to re-explore the possibilities because you heard that rates have dropped, then definitely do that. Also, generally speaking, there are usually better deals in the real estate market in the fall. It never hurts to look. It never hurts to go back out and shop again.
I do think that the spring home-buyer market in 2025 could see some real-estate price decline. There may be some deals to be had, particularly if the Fed is making a decision to continue to lower rates. They seem to be doing so in anticipation of the economy slowing down. Recessionary concerns tend to favor lower interest rates.
Now is the time to contact a mortgage professional concerning home loans for police officers, preferably us at Police Mortgage. Find out what the rates are and try to figure out if buying a new home or refinancing your current loan makes sense for you. The numbers don’t lie.
There are a number of people who have currently FHA loans and VA loans. The pricing on FHA and VA transactions are actually a bit more aggressive than conventional mortgage rates right now. It is possible to get a lower rate for an FHA loan. So, if you currently have an FHA loan you will want to explore seeing what those rates are.
The Fed cut affects all mortgage rates in some way, shape, or form. A decline in mortgage rates will probably take the adjustable rate mortgage out of the situation for most buyers. That is a positive because now we’re not having to talk to people about making a short-term decision with another step left in the form of eventually refinancing to a fixed-rate loan.
Those currently holding adjustable-rate mortgages may very well want to talk to a professional, whether it be at a Chicago police credit union or their local financial institution. For example, say someone has an adjustable-rate mortgage around 5.5%. While we could be potentially raising the payment slightly by going to a 30-year fixed, we would be giving the client more certainty.
When rates drop there are multiple things that can come out of the woodwork as far as the types of transactions that are available to us to help first responders. More buyers may become eligible because lower rates create a more doable transaction.
Obviously the more you wait the more you’re taking a risk that rates move in the opposite direction. One of the bigger caveats, and this is something that just doesn’t get understood by the general public, is that almost all fixed-rate products are very much influenced by the 10-year treasury. Just because the Fed has lowered the benchmark rate does not mean that the market has not already moved in anticipation of it. That’s what happened in the last few weeks as the mortgage rates moved to the lower end before the news came out.
I’m not saying I’m a professional bond trader but I do look at the charts and I do see movement prior to news happening. That’s where working with a good mortgage loan officer who’s knowledgeable about the markets serves you well. Our loan officers definitely pay attention to the 10-year treasury. They have the chart up every day. They have an understanding on a day-to-day basis where the markets are moving.
We can’t predict the future, obviously, but we can catch some of the subtleties of the market and develop an understanding of when it might be a good time to lock in a rate. For instance, we can give you a rate quote today, but I know that Fridays are generally bad in the bond market and Mondays tend to be better for rates. Then you want to wait until Monday, right?
There are certain little nuances with knowledgeable loan officers, like those at Police Mortgage, that may be able to shave some fees or points off a loan and get you a better deal. That’s where the experience comes in. But none of this can really happen unless the Fed acts and they did. So that’s, again, a big positive for us.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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I have my bachelor’s in business administration and have been involved in the banking industry for over 10 years. During this time, I managed two of the Chicago Patrolmen’s Federal Credit Union locations prior to transitioning to Police Mortgage. I have family members who are police officers with the Chicago Police Department. My work has been very rewarding, and I take pride in having assisted countless members and their families with their financial needs and financial wellness. My hobbies include exploring new restaurants in the city and running for marathons that support pediatric cancer foundations and Chicago Police Memorial Foundation’s Run To Remember. I come from a large family primarily from the south side of Chicago and love to share all the diversity and beauty the city has to offer with my two children.
I am honored to grow up in a multi-generational family of Chicago Police Officers. I joined Police Mortgage in the summer of 2020 and love the opportunity to help both first-time buyers and repeat clients alike achieve their dreams of purchasing a home. Having been born and raised in the south suburbs of Chicago, I happily live in the Lakeview neighborhood today. Along with my two younger sisters, I am a graduate of the University of Illinois at Urbana-Champaign and a lifelong Chicago Bears fan. I have a strong passion for food and love exploring the vast array of restaurants throughout our city. Nothing makes me happier than spending a summer afternoon on a golf course with family and friends!
I joined my brother at Police Mortgage as a loan officer in August of 2021 after a 10-year career in sales and marketing. Most recently, I worked as a Senior Account Executive for Ricoh North America, an office electronics company, where my main responsibilities were building new client relationships and maintaining over 400 existing customer accounts. I believe my work experience has transferred over to the mortgage industry well, because I am able to multi-task effectively while working with multiple customers. The skillset I learned in my previous employment allows me to stay organized and to manage my time well for my customers. My number one goal is always to make the loan process as quick and painless as possible for our borrowers. I am excited to further develop the Police Mortgage brand with my brother. It is a unique situation, and I believe working in an office together allows us to help our borrowers even more due to streamlined communication and our ability to help each other with our respective files. I like to spend my free time relaxing, watching sports, exercising, going out to eat with my wife, and trying to keep up with our three daughters – all under five years old!
After graduating from the University of Missouri in 2015, I moved to Chicago where I began a career in marketing at a firm called Ansira. I sought a career change and contacted Police Mortgage, where I was first introduced to the mortgage industry. I have spent the last 5 years training with our CEO, John Aretos, who has taught me all of the intricacies of the mortgage process. I love finding solutions for our clients to help them purchase the home of their dreams. I feel a huge sense of accomplishment when helping homebuyers, especially first-time homebuyers, all the way through the loan process, from pre-approval to closing day. I recently moved back to my hometown of St. Louis, where we opened a new office. I am excited to help start this new chapter for Police Mortgage. My wife, Megan, and I are happy to be back in our hometown. We are always checking out new outdoor events such as music or food festivals – anywhere we can take our dog, Remy!
As the CEO of an organization associated with serving the Police and their loved ones, I am privileged to play a role in helping our clients achieve their life’s financial goals. Our mission is to make the home buying or refinancing process as comfortable as possible, providing our clients with competitive products and excellent service.
I was born and raised in the Chicago metropolitan area, and I have a deep-rooted love and appreciation for the diverse culture which makes our city so special. My two older siblings and I grew up working in our parent’s restaurant, which instilled a work ethic and sense of family that I carry with me to this day.
I am a graduate of Indiana University and have been involved in the mortgage industry for nearly 25 years, helping thousands of clients save money or finance the home of their dreams. My passions are passing down my love of food, music, art, snow skiing, and red wine to my three children, who motivate me to be a better person each and every day!
