so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

[Jay]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

wage and price controls, eh? yeh, those worked like a charm last time.

Thanks, that clip was great, especially to see the personalities who are mostly before my time. Milton didn't mince words, wow.

[BrianL]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

I refinanced a few months ago. No problems at all at the time refinancing to 5%. That was a nice drop from the 6.375% I had previously.

Then again, I bought fall so maybe I fell into the 'is in pain' lot by default. ;)

[makimanos]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

It's obvious. They choose inflation not the $. There is no other way out.

[cjppjc]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

I refinanced a few months ago. No problems at all at the time refinancing to 5%. That was a nice drop from the 6.375% I had previously.

Then again, I bought fall so maybe I fell into the 'is in pain' lot by default. ;)

How much did it cost to re mortgage?

[Jay]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

My wife is ready to kill me for not buying a house yet. We sold in April '06. I've held on since then but can't keep her back forever. Bummer.

[cjppjc]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

My wife is ready to kill me for not buying a house yet. We sold in April '06. I've held on since then but can't keep her back forever. Bummer.

Always tough to pick a bottom. Tougher to pick a new wife.:cool:

[BrianL]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

It cost us about $3,000 in the end.

[cjppjc]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

It cost us about $3,000 in the end.

Well I suppose you'll live in the house long enough to recover the $3,000

I hope it was the right decision for you guys.

[Jay]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

Always tough to pick a bottom. Tougher to pick a new wife.:cool:

I can't stall forever. And she is not one for economics, just putting down roots.

[cjppjc]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

I can't stall forever. And she is not one for economics, just putting down roots.

Good for her. She knows what's important.

[ASH]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

I can't stall forever. And she is not one for economics, just putting down roots.

Are you renting a house now, or an apartment? If you're renting an apartment, then possibly renting a house will buy you some time.

[ax]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

I tried (trying?) to do a loan modification. I sent them what they wanted. 3 weeks later, they said the needed 2 more forms. I had already sent them these, but I guess they lost them. After I sent them the forms, I did not hear back from them for several weeks. I called and they said they needed 2 more things (which I already sent at first). The lady proceeded to explain that since I am now in default the home will go to foreclosure soon. However, the loan modification, after they get all the forms, takes at least 90 days to process. She said the house might already be foreclosed on by then. In other words, they would rather foreclose on a property instead of modifying the loan.

So, us deadbeats are having the same frustrations. My impression of it all is that the banks do not need to modify loans---> they already got all the money they need from the government.

Sorry if I struck a nerve, it's just tough to fathom why I should keep paying when the policemen, doctors, and investors stopped paying their mortgages and HOAs as long ago as 2007 according to some of my neighbors. Chances of getting foreclosed on anytime soon are slim to none with the backlog down here.

[jk]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

i'm just completing a cash out refi at 4.375%. the process was excruciating and endless. i have a fico of 800 but they wanted reams of paper, copies of my pension fund statements, not only a new appraisal [which came in about 20% below what the town assessed my property at about 5 years ago] but then a second field review of the appraisal, proof i had actually paid the taxes shown on the copy of the 1040 i sent them, and on and on.

i'm the perfect borrower- i don't need the money. this is just an inflation play for me, but the hoops i had to jump through...:rolleyes:. i can't believe that many people are able to refinance if this is what i had to go through.

[BrianL]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

It pays for itself in 13 months. Definitely worth it for us. As we were only 4 months into our loan, we didn't significantly extend our loan either.

It definitely made sense for us. The place is within walking distance to my office, bus stops and stores. Quiet neighborhood. It has enough of a yard for a small garden. It is small, so the heating cost is cheap. It isn't a glamorous place but we bought planning to stay as long as possible.

[a warren]

Re: so... when do 30 yr mortgage rates hit 5.5% and then what for housing?

i'm just completing a cash out refi at 4.375%. the process was excruciating and endless. i have a fico of 800 but they wanted reams of paper, copies of my pension fund statements, not only a new appraisal [which came in about 20% below what the town assessed my property at about 5 years ago] but then a second field review of the appraisal, proof i had actually paid the taxes shown on the copy of the 1040 i sent them, and on and on.

i'm the perfect borrower- i don't need the money. this is just an inflation play for me, but the hoops i had to jump through...:rolleyes:. i can't believe that many people are able to refinance if this is what i had to go through.

This inflation play idea seems obvious to me but I have not before seen it mentioned on the tulip. There seems to be almost a moralistic hatred of debt on these pages. But surely it is rational to have debt at a fixed interest rate if you are expecting inflation. I see reference to negative real interest rates often. So congratulations for taking advantage. But you may attract the wrath of many a tuliper....