Dpassmore

Rates are higher.. so I shouldn't refinance?

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So over the past few days mortgage rates have went up and this is starting to feel like the new rate environment we are going to be in.  This doesn't mean there are no advantages to refinancing,  it just means rate and term (without dropping mi) doesn't make sense for a while. 

That being said cash out is still a huge opportunity, both for debt consolidation and home renovations/additions. Considering that second mortgages/home equity product will experience a increase in rates and unsecured financing is typically higher in rate and shorter in term.

Also term reduction- your 6 years into a 30-year loan and can stand a higher payment? Research 20,15,& 10 options. The additional monthly obligation may be worth the payment allocation to principal. Just make sure to calculate the scenario of you paying that payment difference to the t principal in your current loan to get a good idea of your actual savings options.

Any corrections on this assessment or questions?

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2 minutes ago, Dpassmore said:

So over the past few days mortgage rates have went up and this is starting to feel like the new rate environment we are going to be in.  This doesn't mean there are no advantages to refinancing,  it just means rate and term (without dropping mi) doesn't make sense for a while. 

That being said cash out is still a huge opportunity, both for debt consolidation and home renovations/additions. Considering that second mortgages/home equity product will experience a increase in rates and unsecured financing is typically higher in rate and shorter in term.

Also term reduction- your 6 years into a 30-year loan and can stand a higher payment? Research 20,15,& 10 options. The additional monthly obligation may be worth the payment allocation to principal. Just make sure to calculate the scenario of you paying that payment difference to the t principal in your current loan to get a good idea of your actual savings options.

Any corrections on this assessment or questions?

 

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On 11/11/2016 at 11:45 PM, Dpassmore said:

this is starting to feel like the new rate environment we are going to be in.

Quite a big leap for something that just happened and has only been an impact for 4 or 5 days at best.  I don't believe anyone can know if or when rates will remain higher or if they will fall back down after a period of time.  But either way the rates are still under 4%.  For right now, it sounds like much ado about nothing.

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