Most likely chasing lower interest rates.
After Reagan crushed inflation in 1981-1982, interest rates declined for almost 40 years.
The US 10 Year Treasury Bond was 16% in 1982.
In 2020 - it was 0.65%.
You need almost a full point drop to make refinancing worth while. Unless, rates drop so fast that you just refinance with the same lander. Who may not require some of the same closing costs and title searches.
I just counted. I have owned three different houses since 1900. I have had five mortgages. First one was 10.375%. Refinanced that to 6.75% no points. Sold that house. bought the next at 6.375%. Refinanced to 3.75%. Sold that house. Bought next @ 2.375% for 15 years. Paid it off a couple years ago.
I believe these refinances and lines of credit have been since 1996
“ Most likely chasing lower interest rates.
After Reagan crushed inflation in 1981-1982, interest rates declined for almost 40 years.
The US 10 Year Treasury Bond was 16% in 1982.
In 2020 - it was 0.65%.”
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But there are a multitude of fees connected up with every single refinancing. Even if interest rates go down 2%, it is a coin toss as to whether that will make sense over the next 5 to 7 years. If rates went from 16% down to approximately zero, that would indicate a maximum of eight refinancings, none of which would’ve had the requisite 5 to 7 year breakeven period. Something is very suspicious about this, and when it involves someone as obviously corrupt as Biden, it is a guarantee that something else was going on.
You get no financial gain, by refinancing for lower rates 20 times. The cost in paperwork, and the movement of the loan payoff to the future makes it a stupid move for the vast majority of homeowners.
Maybe someone smarter than me figure out what the benefit is?