Comments on: Refinance Now? Yes!

By: M Petrone

M Petrone — Sat, 17 Jan 2009 16:52:38 +0000

With mortgage rates at near all time lows across the country homeowners are flocking to take advantage. Mortgage refinance allows homeowners to get a new mortgage at the current record low rates. Check it out if you are having financial trouble. Great site I will bookmark and come back soon!

By: Atlanta New Homes

Atlanta New Homes — Thu, 06 Dec 2007 20:25:59 +0000

Waiting for a better rate is the same as waiting trying to wait and buy something you think may go on sale at a better price.

The rates are what they are, just dont forget that you can always refinance later to catch a better rate.

Good blog!

By: JanaH

JanaH — Thu, 06 Dec 2007 17:59:43 +0000

I followed this advice a few months ago, and now find that had I waited, I’d have a lower rate. I guess I understand the mindset of some of the clients who want to wait. Yes, it is a gamble — a gamble that I took and “lost.”

I see what you’re saying, though. It does make sense.

By: The Mortgage Guy

The Mortgage Guy — Thu, 06 Dec 2007 02:49:08 +0000

You make a valid point. I did a similar piece on my blog a couple of weeks ago.

Waiting for a lower rate is a dangerous proposition these days. More than likely, rates will continue to trend downward. Rates are the only weapon, an ineffective one at that, that the Fed has to use to combat both the mortgage crisis and the recession it is causing.

However, while waiting for lower rates, a home can depreciate to the extent private mortgage insurance is necessary. If that is the case, chances are good any interest rate savings will be offset by the mortgage insurance premium. Worse yet, depreciation can occur to the extent that the transaction becomes impossible.

Let’s face it. Fannie and Freddie are not on the firmest of ground. Who knows what their loan offerings will be next year. They could be in a position where they are unable to lend. Or it’s possible, as the crisis grows, that the spread between treasuries and mortgages widen to reflect additional risk.

There are truly a myriad of things that could happen and not many are good for the borrower or our industry. Consequently, I am urging all clients to act now, while they can and while the transaction still makes sense. But many think it’s two or three years ago when money was falling from trees.

Homeowners need to take advantage of the here and now.