4.5% mortgages

[markvid]

Saw on CNN in an airport this morning that to spur home sales, the gov't is seriously thinking of taking the rate to 4.5%.
First off, I freely state up front that I know nothing about any of this.
That said, would any of you refinance? Is it worth doing?

 

[Simon_Cowbell]

Saw on CNN in an airport this morning that to spur home sales, the gov't is seriously thinking of taking the rate to 4.5%.
First off, I freely state up front that I know nothing about any of this.
That said, would any of you refinance? Is it worth doing?

Would not apply to refinance.

Which would get people selling their homes so they could buy another at a 2 percent lesser rate.

 

[OTD]

Saw on CNN in an airport this morning that to spur home sales, the gov't is seriously thinking of taking the rate to 4.5%.
First off, I freely state up front that I know nothing about any of this.
That said, would any of you refinance? Is it worth doing?

It would be worth it to refi, but the problem is still going to be that a) banks will be much stricter about qualifying (no more getting a loan with a 600 FICO) and b) few have the equity to refi. You're going to need 20% equity (or down payment), which most who'd like to refi don't have.

 

[Highway 101]

As a fella looking to buy without needing to buy... where's the jerk-me-off-smilie?

 

[PeteyPirate]

As has been stated, the lower rates would not be available for refinances.

 

[Joe Williams]

I've been sitting on our 4.875%, refusing to budge because of what we'd have to pay with a new rate. Now not so much. But moving is such a pain in the ass -- gotta actually go through my stuff and box it up, which feels too much like getting laid off from a newspaper job, except no security guy escorts you out of your own home (unless you got foreclosed on, I suppose).

This also assumes that we could find a place we liked that hasn't had water damage or something and isn't next to "Deliverance" style neighbors and isn't a contingency deal where the sellers' own miserable balance sheet torpedos their other deal.

Damn, it's always something in Joe's world.

 

[markvid]

See that's where I'm confused - the woman on CNN specifically stated it would apply to existing mortgages as well.

 

[pressboxramblings07]

My mom is pissed that she's already locked into her rate on her new house -- 6 or 6.5%, not sure which one. The other day she could have gotten 5.5%.

 

[Sheri]

isn't next to "Deliverance" style neighbors
Damn, it's always something in Joe's world.

But at least you got a pretty mouth.

 

[slappy4428]

Ours is 6.5 but we're only 2.5 years into it... not sure if we should refinance or not. Both of us are making less money than we were then.

 

[Football_Bat]

Saw on CNN in an airport this morning that to spur home sales, the gov't is seriously thinking of taking the rate to 4.5%.
First off, I freely state up front that I know nothing about any of this.
That said, would any of you refinance? Is it worth doing?

It would be worth it to refi, but the problem is still going to be that a) banks will be much stricter about qualifying (no more getting a loan with a 600 FICO) and b) few have the equity to refi. You're going to need 20% equity (or down payment), which most who'd like to refi don't have.

Wouldn't hurt to try. The worst that can happen is the bank says no.

My rate right now is 6 1/4 %, I'm pretty sure I've got more than 25% equity, and I've really worked hard to get my credit rating up. And I'm only 4 1/2 years in on a 30-year note. If these things come available, I'm all over it.

 

[Shaggy]

I got 5.7 percent in a declining market and only 10 percent down a couple of months ago. I was pretty pleased.

 

[Tom Petty]

i'm guessing the 4.5 is for 15 years, correct?

 

[Football_Bat]

i'm guessing the 4.5 is for 15 years, correct?

That would be even better for me. The monthly payments would not be that much greater than a 30-year at 6 1/4, and the principal (and equity) build up much faster.

 

[Tom Petty]

i'm guessing the 4.5 is for 15 years, correct?

That would be even better for me. The monthly payments would not be that much greater than a 30-year at 6 1/4, and the principal (and equity) build up much faster.

i'm just askin', bat.

 

[CM Punk]

5.25 fixed for 30 years, and I'm almost four years in. Hmm.

 

[93Devil]

I thought I heard that the 4.5% is for 30 years.

 

[Football_Bat]

i'm guessing the 4.5 is for 15 years, correct?

That would be even better for me. The monthly payments would not be that much greater than a 30-year at 6 1/4, and the principal (and equity) build up much faster.

i'm just askin', bat.

I know, Tom. Even if it's only 30 years, you still can add a principal payment to your monthly bill and seriously cut the term of the mortgage. I used an amortization calulator and figured that by paying an extra $100 a month I can pay mine off in 13 more years. The difference in interest saved will stun a mastodon.

 

[Baron Scicluna]

7.5 percent for 30 years, and I'm seven years in.

Thing is, every time I've tried to refinance, different companies kept offering me ARMs and flexible rates. I turned them down.

 

[proudpittsburgher]

Problem is, even at 4.5 percent, there will still be those greedy bastards out there who go for the ARM at 3.5, then ***** and complain and file for bankruptcy when it raises to 8.