WatchSo I was out in the garage doing final assembly on my car's new engine and I had 98.5 KFOX on. KFOX has been my trusty go-to radio station for a long time and a little classic rock always makes car/woodworking/machining projects go better for some reason. Anyway, I counted no less than 8 radio ads for re-fi's from 4 different companies over the course of the hour that I was out there***. Hell, even CASH CALL is in on it. "We don't discriminate based on incomes. We guarantee that you'll qualify!" I guess that rates are low and the lending industry is HUNGRY. Thoughts on this? Personally, I find it amusing.
***Only an hour to assemble a long-block? Well, the engine builder forgot to return my custom lightened flywheel with the engine! It's sort of tough to get the power to the wheels without it! So, looks like I get to wait another week before getting the '91 318iS running again, and what's another week considering it hasn't had an engine in it for 6 months!
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Menlo Park, CA
Uh oh, that sounds eerily familiar.
I think Iwog is right about mortgage companies springing up to do these refi's.
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San Jose, CA
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We don't discriminate based on incomes. We guarantee you'll qualify. Can I get their phone number(s) please? :)
Real estate is hot. Refinance is hot. Only if they brought back no docs and stated income loans, we would go for another round of mini housing bubble. :)
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El Cerrito, CA
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When you can't fail and will never go to jail you're golden. What is supposed to be a business with risk mitigated by good judgement has devolved into nothing but a money laundering operation for state sponsored counterfeiters.
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bmwman91 says
Right now rates are all-time low and another refi cycle presented itself. 15 year 2.75%, 30 yrs 3.5%, jumbo is +.25% 0 points and negative fees so out of pocket is essentially 0.
You'll be an idiot business if you don's strike while the iron is hot. You'll be an idiot if your ad doesn't grab everyone into your door. It only takes 5 mins to reject someone but the firm stands to benefit thousands of dollars on a close so it make sense to cast a wide net. In two weeks, you will see MBAA mortgage application off the charts. It is the fringe borrower that are lucrative and reachable than otherwise.
In any case it is interesting that QE3 is buying mortgage backed security directly and not long term bonds so QE3 will have a huge impact on home borrowing rates and make the private vs. government gap even further. The lending industry is just the sales agent needed to reach millions of down stream customers for a fixed fee and pass the contract to some federal agency. The worry is how the fed can get out of it and the impact it will have.
It is one hell of a stimilus. While Bush gave $400 tax refund in 2008, the falling rates between 2008-now stimulated the well off in the tune of 10's of thousands, annually for the wealthy.
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Boulder Creek, CA
Something still isn't right about RE, I'm just not sure what the play is. Something is *very* wrong. I'm personally long prop 13, so enjoy bitches :)
Have you ever put a long block of anything together? 1 hour? lol? Something ain't right about that either.
/long expired AERA member
//built more small blocks than I can count
///18436572 at least I still remember that.
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bmwman91's website
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CrazyMan says
Haha yeah that was sort of the joke in the original post. It is definitely taking me more than an hour! It's my second time through with this particular engine thanks to a busted valve spring on it a month ago. Thankfully the builder covered that and dealt with the grittier details.
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Patrick says
I have noticed it also. On television too. Oh yeah the smell is in the air again and it really is horrid.
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Boulder Creek, CA
bmwman91 says
Yeah, sorry. My knack for the obvious fades proportionally to the # of beers I've had, which last night was quite a few. Was fun though :)
Enjoy the engine rebuild.
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Fontana, CA
This is what happens when you give the wealthy and well-connected MORE money to help out Main Street.
Trickle-down, working great for us? Right?
Barack Hoover Obama
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Baltimore, MD
I don't pay attention to the ads enough to remember what they are for.
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I noticed that too. Every radio ad is either about refinancing, or someone selling rental properties.
Might be related to QE3, Bernanke left it open ended, free money for the banks as long as they keep the refi's and low rates going.
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From an article I read recently, 80% of mortgage applications now are for refi's, not new mortgages.
Also, with all this advertising, maybe it's a catch to get you to come in and refi so the bank can get new, clean mortgage notes because the past notes have been sliced, diced and sold off during all the robo-signing crap.
With new notes, it will make it easier to foreclose later on!! Plus, they can make the refi a recourse loan versus the current non-recourse loan....
Remember, the bank it's offering refi's to help YOU, they are doing it to help THEM!!
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Call it Crazy says
This is first grade rant.
The only reason an individual company/entity advertise is they believe it is a return on investment. Most of the companies that advertise on the radio are probably unknown lenders (agents as they are just middle wo(men) that need to communicate their service to have a chance.