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If rates went to 5.875% and that's what you close at, the rate may never drop low enough in the future to refinance. The only reason they got down where they were in the last couple of months is because of the gov't intervention. Hopefully we never see that again.
Exactly! Some people believe it is inevitable that mortgage rates will drop [back] again. That's not necessarily so... Government intervention has artificially created the recent low mortgage rates. Whose to say those low rates will remain. Mortgage rates at some lenders spiked by as much as 1 percent on Wednesday and saw little relief on Thursday.
I'm locked at 4.5% with my application going to the underwriter today. Everything looks solid, and I have enough equity that I'm not worried about the appraisal. I should be "saving" about $350 per month. In reading the MSNBC story, I'm surprised that it states the average saving is between $300-$400 per month and it's anticipated to help the economy in that people will spend that extra cash on going out more, buying more, etc. A story I read a few days ago stated that the average household carries over $10K in credit card debt. Wouldn't common sense say to send that "extra" money to pay off debt or pay extra to the principal? Maybe not for those for whom the refi makes the monthly payment manageable, but still...
I've been paying ahead all along but will still write the same check each month. It's just than an additional $350 will be going to principal rather than buying a bigger TV or eating out more often.
I'm locked at 4.5% with my application going to the underwriter today. Everything looks solid, and I have enough equity that I'm not worried about the appraisal. I should be "saving" about $350 per month. In reading the MSNBC story, I'm surprised that it states the average saving is between $300-$400 per month and it's anticipated to help the economy in that people will spend that extra cash on going out more, buying more, etc. A story I read a few days ago stated that the average household carries over $10K in credit card debt. Wouldn't common sense say to send that "extra" money to pay off debt or pay extra to the principal? Maybe not for those for whom the refi makes the monthly payment manageable, but still...
I've been paying ahead all along but will still write the same check each month. It's just than an additional $350 will be going to principal rather than buying a bigger TV or eating out more often.
We thought about this, as well, but it doesn't make sense to pay down principal more quickly with a rate so low. After tax savings on mortgage interest, your actual interest rate may be something like 3.5%. Invest that money rather than paying into principal, you could easily see a better return than 3.5% over the course of your mortgage. That's what we've decided to do. I think we'll come out ahead in the end.
I suspect those who think inflationary pressures are growing are listening to the talking heads constantly trying to hawk their service on the 24x7 invest-o-rama programs. Somehow I don't such sources are to be trusted.
No they are looking at past times when teh fed lowered rates as they have now and national debt was high also. The fed has always been late in raising rates before inflation kicks in. This as stated has nothing to do wiuth that its the feds not buyign enough treasuries in the markets opinion.Also China seems to be buying mosre commodties than investing inh treasuries lately.
I'm locked at 4.5% with my application going to the underwriter today. Everything looks solid, and I have enough equity that I'm not worried about the appraisal. I should be "saving" about $350 per month. In reading the MSNBC story, I'm surprised that it states the average saving is between $300-$400 per month and it's anticipated to help the economy in that people will spend that extra cash on going out more, buying more, etc. A story I read a few days ago stated that the average household carries over $10K in credit card debt. Wouldn't common sense say to send that "extra" money to pay off debt or pay extra to the principal? Maybe not for those for whom the refi makes the monthly payment manageable, but still...
I've been paying ahead all along but will still write the same check each month. It's just than an additional $350 will be going to principal rather than buying a bigger TV or eating out more often.
Friendly and pre-emptive advice:
Go back through your paperwork and make sure your lock in letter is completed and signed. Know your lock expiration date and contact your title company and make sure everything on your end is in line. Make sure you will be able to close and fund (go thru rescission). Sit on your loan officer until you are closed.
Go back through your paperwork and make sure your lock in letter is completed and signed. Know your lock expiration date and contact your title company and make sure everything on your end is in line. Make sure you will be able to close and fund (go thru rescission). Sit on your loan officer until you are closed.
^^good advice, although if you have a competent LO working for you, you should be fine. (that is sometimes a big 'if')
never assume that the person working for you is competent
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