"Mortgage rates continue to fall, this time to below 3.5 percent for the popular 30 year fixed product reports ForTheBestRate.com, a consumer focused mortgage research website. On Friday, July 27, 2012 30 year fixed mortgage rates were advertised in the ForTheBestRate rate tables as low as 3.38% (APR: 3.42%, Points: 0.000, Fees in APR: $895, Lender: Online Mortgage Group.) 15 year fixed mortgage rates which also reached new record lows on average, were posted as low as 2.88% (APR: 2.91%, Points: 0.000, Fees in APR: $395, Lender: Online Mortgage Group.)"


http://news.yahoo.com/average-30-fixed-mortgage-rates-fall-below-3-120419731.html

I could be wrong but I'm right 99% of the time

sweet, 35% increase in monthly payments if rates get back to 6% in next five years

This is setting up for a second housing bubble burst.

opie cunningham Wrote:
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> sweet, 35% increase in monthly payments if rates
> get back to 6% in next five years

30 year fixed not five year adjustable. So how exactly would your payments go up. You fucking idiot.

I could be wrong but I'm right 99% of the time

burst Wrote:
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> This is setting up for a second housing bubble
> burst.

No, I think it's the Gov's attempt to fix the first one.

I could be wrong but I'm right 99% of the time

The average person stays in the home for 7 years. That's probably well within the time frame that interest rates could rise sharply to 6 or 7 percent. By then, the federal debt could be 130% of GDP, a level equivalent to many of the PIIGs.

Lloydster Wrote:
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> burst Wrote:
> --------------------------------------------------
> -----
> > This is setting up for a second housing bubble
> > burst.
>
> No, I think it's the Gov's attempt to fix the
> first one.


And how long can it last, genius?

Given that rates on treasuries are so low, it isn't that surprising that people would be willing to lend money at 3.5%. Now my question is how many potential home buyers out there will qualify for those rates?

Bill.N. Wrote:
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> Given that rates on treasuries are so low, it
> isn't that surprising that people would be willing
> to lend money at 3.5%. Now my question is how
> many potential home buyers out there will qualify
> for those rates?


I just finished my refi at that rate. If you haven't refinanced in the last 6 months and you bought more than 18 months ago, you are a fool. Unless, of course, you are close to the end of your payments or you are planning a move within the next year.

a very rich woman took my advice.
She wanted a new house but I told her not to do that and instead upgrade her current house as her investments will pay off keeping the house looking like new.

So after fixing up her house she then bought a new car.

I told her she just saved a lot of money and hassle.

her current mcmansion is totally paid off.

and? Wrote:
-------------------------------------------------------
> Lloydster Wrote:
> --------------------------------------------------
> -----
> > burst Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > This is setting up for a second housing
> bubble
> > > burst.
> >
> > No, I think it's the Gov's attempt to fix the
> > first one.
>
>
> And how long can it last, genius?

Till inflation starts kicking son.

And poster was right, if you haven't refied in the last 18 months AND you can qualify (as Bill N rightly pointed out) you would be fool not to refy.

I could be wrong but I'm right 99% of the time

Well, I wouldn't be that simplistic about being a fool not to refinance. I re-fied a couple years ago to 4.5%. Factoring closing costs it would take me something like 5 years to break even. Prolly not worth it cause I don't know where I'll be in 5-10 years.

Now, for anyone interested, if you could re-finance to a 15 or 20 year mortgage that would be a GREAT deal. Yeah you may pay more a month but if your at an age where you expect income to raise then you can absorb it.

res Wrote:
-------------------------------------------------------
> Well, I wouldn't be that simplistic about being a
> fool not to refinance. I re-fied a couple years
> ago to 4.5%. Factoring closing costs it would take
> me something like 5 years to break even. Prolly
> not worth it cause I don't know where I'll be in
> 5-10 years.
>
> Now, for anyone interested, if you could
> re-finance to a 15 or 20 year mortgage that would
> be a GREAT deal. Yeah you may pay more a month but
> if your at an age where you expect income to raise
> then you can absorb it.

That's probably why the refi boom is not a big stimulus like it was in 2004. More people are refinancing to 15-year.

http://www.azcentral.com/business/realestate/articles/20120723homeowners-refinance-year-loans.html