Should I refinance now? - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - Page 2 - City-Data Forum

renriq02 · 10-16-2007, 08:49 AM

If I were in your shoes....I would quickly rent out the home. Do a lease option to buy.

You said your rate will be 6.875% for 1yr....then you have 1yr to plan out what you need to do.

martinez4 · 10-16-2007, 08:56 AM

[quote=banker0679;1735364I believe the market is overinflated...and will soon correct itself.[/quote]

Amen......a major correction is in the works.....do you anticipate another rate cut???

Sorry to go off topic

but am curious as to your thoughts.

renriq02 · 10-16-2007, 08:58 AM

there should be another FED rate cut.......market normally flattens out during the end of the year.

if there is another FED rate cut...then the mortgage rates WILL go up.

martinez4 · 10-16-2007, 09:07 AM

Quote:

Originally Posted by banker0679

there should be another FED rate cut.......market normally flattens out during the end of the year.

if there is another FED rate cut...then the mortgage rates WILL go up.

Interesting....from my perspective, I don't think the Fed should be cutting anymore....risk of inflation is too great and it will further kill the dollar.

jeffselan · 10-21-2007, 06:29 AM

The Michigan market is in chaos, generally. However, I'm sure there must be pockets where housing is not in a declining market. I suggest two things.

1) Have a prospective lender do a breakeven analysis to let you see how long it will take you to to catch up with the fees it will cost you to refi.

2) Get a reputable Realtor to do a market analysis to let you know the true market conditions in your area. This should help you make a better, more educated decision. Hope this helps some!

trmaoy · 10-26-2007, 11:48 AM

Thanks to all for the suggestions. As it turns out, I was mistaken about my rate adjustment. It is only adjusting to 5.875%. So, I have decided that under any scenario I will not refi now. I will not be able to get a lower rate than that. And the prime rate on the HELOC will likely drop too if the fed cuts rates again.

I'll likely be revisiting this in a year though, and I hope I won't be screwed with even higher interest rates and lower house values a year from now.

I'll be able to pay down more on the principal over the next year, but it won't matter if my home value drops another $30k. But, I'll worry about that then.