Posted on 01/24/2024 8:18:57 AM PST by davikkm
In a concerning trend, the financial advice landscape on CNBC has taken a speculative turn that many find alarming. The mantra of “Buy now, refinance later” is being propagated, raising eyebrows as experts caution against such advice, especially if interest rates don’t fall low enough for a successful refinancing.
The desperation to pump and speculate on all assets, as observed on CNBC, has sparked a conversation about the ethical responsibility of financial platforms. “Buy now, refinance later” is being labeled as one of the worst pieces of financial advice, especially given the potential pitfalls if interest rates do not align favorably for refinancing.
(Excerpt) Read more at citizenwatchreport.com ...
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 why housing prices are so out of control- no one wants to sell a house, pay off a 3% mortgage, then buy another home and take an 8% mortgage, regardless of the amount of equity in their home.
According to realtors it is always a good time to buy.
If folks thought it was a bad time to buy the realtors would starve.
Realtors have a conflict of interest which makes their views on the topic a joke.
I was thinking, what if your property’s value goes down? Then refinancing is off the table, whatever the interest rates might be.
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…
We have been in our house since 2000 and have refinanced 5 times. Now at 3.5%.
If you have paid on your mortgage for say, 10 years, most of your payment is going toward reducing the principal.
This is an important consideration in deciding whether to refinance.
We started with a 30-year fixed rate loan. After seven years, we adjusted/refinanced the rate and set the new term to 20 years (putting us on a total of 27 years).
Four years later, we adjusted the rate again and set the new term to 15 years (putting us on a total of 26 years).
Three years later, we adjusted the rate one last time and set the new term to 10 years (putting us on a total of 24 years).
We would have paid off the loan this year if we hadn't moved back in 2018. The final interest rate was 2.625% for 10 years.
This tactic worked for us because we never increased the time with which the mortgage needed to be paid off. For those who keep refinancing back to 30 years, you have a valid concern.
*few dollars ($100 or so)
As a Realtor, the only thing I advise my clients of is the current inverse relationship between housing prices and mortgage rates — at least here in the Charleston SC area. So if you’re trying to game the system you will likely end up chasing your tail. The best thing to do is look for the house that sits on the market 30 days or more and assume you can get the seller to cover at least closing costs. Otherwise, most move-in ready homes in my area are still going at or above list.
The next agent who will be driving you around in her Acura, and calling herself a "Buyer's Agent", (supposedly YOUR agent) just has a different little side arrangement with the Buyer, "You", that has wording to the effect of her working in your interest.
Guess what though... Her livelihood depends on you buying that house. Don't forget that, no matter how much emotional pressure is put on you by whomever.
Burn rubber getting the heck out of town if you have to.
My experience is that realtors are on a normal curve where the center of the curve is self-dealing clowns.
Some (the left hand part of the curve) are hilariously and blatantly incompetent.
The right side of the curve includes some decent folk who are true professionals with high ethical standards.
They are hard to find—and often you need to live in a community for decades before you even know who they are.
Tell your kids.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.