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Anybody refinancing since mortgage rates are going down? - Page 2

post #21 of 25
Originally Posted by llamalluv View Post
I don't get that part. If people are using the money to buy houses, then the money is going from one bank to another (or in some rare cases, to a seller who is likely to just put the money back into another house). I don't see how this makes the money "flow" except for a small percentage going to the agent/brokers and the bank for closing costs.
I think a lot of it is in the building sector. Plus I heard on the radio that since the first problem was the drying up of the real estate market (homes are not moving at all), they think that if they can unstick that, it will get all sorts of credit flowing again. And they're prediciting they'll eventually get that low anyway, they just want to skip the in between bit.

Just imagine someone who's facing foreclosure if they can't sell. They're putting every cent they can into their mortgage, and my family is putting every cent into our deposit. Along come my family, who aren't planning on buying for another year, partly to wait until interest rates are lower before we lock it in for 30 years. But if they drop the interest rate to 4.5% we'll buy much more quickly to lock in that low rate. So the seller doesn't get foreclosed on, they move somewhere cheaper and start spending money on groceries and restaurants instead of their huge mortgage, we move in and get a deck built and some curtains, the deck builder takes his family out to the ball game and buys them hot dogs because he had a big job this week, the curtain shop pays the wages of the Saturday morning part-time employee etc, etc.
post #22 of 25
I wouldn't refinance unless my existing mortgage was less than 5 years into a 30 year mortgage (or less on a 15 yr) and the rate was quite a bit lower.
Otherwise, in the long term, you are going to lose out.

If someone is upside down on their mortgage, as so many are these day, it is not even an option.
post #23 of 25
I have a question. We bought our house using proceeds from a relative's heloc on their own home. We make the payments every month. Right now they are great because heloc is tied to prime and the rate is 3.X%. However, we want to get a mortgage for the house and pay off the relative sooner than later. Would we qualify for this? The house is owned "outright" by us, but not really because we owe 110k to the relative and have our own 50k heloc as well. How could we take advantage of this 4.5%, if it is even possible?
post #24 of 25
Those of you who just refinanced, what rates are you getting? And how's your credit?

post #25 of 25
Before doing anything with your mortgage... please really investigate what you are doing. I want to cry when I hear that people are paying off cars with their mortgage and refinancing when they plan on selling in a couple of years. It is NOT about how much you pay each month. It is about how much you pay when all is said and done. Think long-term.
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