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follow Patrick 2018 May 19, 4:54pm
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It makes little sense to refi at these rising rates. But here we are. ...But why is there any refi activity all at all?In September 2017 the MND mortgage rate rate was 3.85%. In June 2016, the MND rate was 3.43%.It makes little sense to refi at 4.70% when one could have done it less than two years ago a point and a quarter lower.At these rates, refi activity should be in the low single digits. Yet, 36% of mortgage applications are refis.Housing ATMsAre people pulling money out of their houses to pay bills?That's how it appears, as Cash-Out Mortgage Refis are Back.What's Going On?1. People feel wealthy again and are willing to blow it on consumption2. People pulling money out to invest in stocks or Bitcoin3. People are further and further in debt and need to pull out cash to pay the billsI suspect point number three is the primary reason.Regardless, releveraging is as wrong now as it was in 2007. Totally wrong.
Hopefully Trump wont let the ghost inventory be manipulated to keep the market artificially inflated. Like a certain So & So did the last time.
Even better the federal government should borrow the money to do it.
Perhaps you meant vastly improve the finances of the federal govt?
Time for a tax cut!
I'm ready for the next down turn. Plan on buying a vacation home/rental.
if I got a job that paid less than I had before, they would have put money in every month to make up for the discrepancy.
MrBark saysif I got a job that paid less than I had before, they would have put money in every month to make up for the discrepancy. I didn't quite catch this part: they would pay you the difference between your old and your new salary? This sounds too outrageous even for CA. Can you explain in more details?
Let's say you make $100k a year. You are used to making $100k a year and paying your $2600 mortgage payment, which is around 35-40% of your net income. You become unemployed via layoff (didn't get fired or quit your job). New job you find pays you $70-80k a year – now your mortgage payment is closer to 45-50% of your net and that can be seen as a stretch for affordability. Since the program's key goal is to keep your in your home and to avoid foreclosure, Keep Your Home California program will kick in a percentage of extra money toward your payment each month based on your new lower income.