I’m finishing up a mortgage which is fixed at 3% or so. I get fliers in the mail from banks telling me that this a GREAT time for me to refinance! They can get a rate under 8%. Adjustable rate, of course.
Welcome to 2005.
This sort of advice is nothing new.
When my wife and I bought our first house in 1986, we were told that it was a good time to buy, because we qualified for the mortgage at 9.5%, and were also told that we could refinance later.
And a couple years later we did refinance at 8% ,and then later refinanced at 7%.
“Buy now, refinance later”
More like “Buy now, Federal Loan Bail-out later”
That’s how all those people got stuck with those balloon mortgages years ago.
I guess it’s fine if housing prices keep rising and you can sell and make a profit. A foreclosure would screw all that up.
China->CRE->residential
have they lost their everloving mind!!!??!!
i hope and pray, by any means, that the minds of John Qq. and Jane Q. Public are not towards entertaining tthid ifea of financial self-affixed serfdom!!!
yas buy da t’ing, so’s itz yo’s, free, clear, and not owned by anybody or any business!!!
Perhaps if Trump wins…
I have in-laws who did that during the Jimmy Carter inflation. They bought a $160K home at 14% interest. A couple of years later, they refinanced for around 6%. The house sold recently for nearly a $million.
Most people buy houses based on what payments they can afford on a 30-year mortgage. If you could afford a $350K house when Trump left office in 2020 (and mortgage rates were around 3%) then you can only afford a $300K house today (with mortgage rates around 7%).