THE MORTGAGE STRUGGLE

[Bretsky]

Interesting article; notice the date

Talk about foreshadowing

http://query.nytimes.com/gst/fullpag...=&pagewanted=1

[SkinBasket]

Fuck the poor. I'm going to refinance again soon. It's been almost a year since my last one so I'm getting antsy. B, you can have the refi @5.25 w/ $750 CC.

[swede]

Bretsky--

I've had a 5.75 rate on a 30 yr. for about 5 years Can I wait for a straight 5.0 or should I grab the first 5.25 that comes along?

[texaspackerbacker]

Interesting article.

Many have blamed the pressuring of lenders to increase loans to minorities and less qualified people in general for the huge increase in foreclosures, despite the fact that rates have been historically low throughout this "crisis". Maybe it's actually the quality of borrowers rather than economic conditions that are the primary cause.

I have said from the beginning, however, that with real estate as security for loans, the lenders and the underlying funders of mortgages should NOT be hurting to the extent we are told--even with real estate prices dropping by half or more in a few isolated areas.

Somebody is making out like bandits in this whole mess, and I can't help thinking, that has a lot to do with the contrived "urgency" of all these bailouts--which now are not even going toward the originally stated reason--buying up these bad mortgage clusters.

[Bretsky]

Bretsky--

I've had a 5.75 rate on a 30 yr. for about 5 years Can I wait for a straight 5.0 or should I grab the first 5.25 that comes along?

Just some thoughts; keep in mind none of this is meant as advice.

Most of that depends on your balance; and what brokers sometimes do not disclose is customers normally have to have 740+ credit to get the best rates today so be sure you are working with somebody honest who will disclose this up front if there are any interest rate adjustments. Also, if you are combining mortgages or doing debt consolidation the program becomes a cash out refinance.....which means either your fees are higher or the interest rate is higher.

In the days of 2007 everybody who could get approved would get the best rate. Those days are gone. It's not a fun call to make when you pull credit and have to call somebody back to let them know they don't qualify for the best rate right away. Some may choose to wait til later in the process or at the end in hopes somebody does not walk away from a deal.

With a high balance getting a half point can mean a large amount of savings. Right now most places are at 5.25% with no points and ballpark closing fees of 1,000-1,200 if you include all of the title insurance costs.
Last week for about a day and a half rates fell to the 5.1 range, then popped up, and went back down the last two days.

Depending on your balance, you would want to see the exact monthly savings and could figure out approximately how long it will take to make those fees back. If you are conservative and 5.25% is a rate you are happy with my vantage point would be to roll with it. If you are a gambler and want a bit more then you shoot for 5.125 or 5%.

Nobody can predict this market; my gut tells me it may go a bit lower but we are near the bottom.