Rates are Great - But Can You Refinance?
I was speaking with Mark Timpane (Edina Realty Mortgage Home Loan Specialist) the other day about the recent spike in loan refinancing applications. With the rates under 5% for most loan products, it only makes sense that people would want to get the better rate. Two main points came out of our discussions:
1) Of the last 30 people he had requesting a refinance, only 3 qualified with the equity and/or cash to actually get the refinance done.
2) Many people were willing to add 8 years to their mortgage in order to save 3/4 of a point on their interest rate.
The first point sure makes it seem like that $750B economic bailout package is working perfectly as expected (please note my dripping sarcasm with that statement). With all the talk about helping out the home owners to get out of these bad mortgages, it sure seems like we are missing out on a golden opportunity to get them out at good rates.
The second point makes me wonder when it is that they plan on actually saving money if they keep extending their loan to a 30 year mortgage again.
Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud
http://JasonTangen.EdinaRealty.com - Home of the e-Market Analysis (Free Home Value Estimator)
http://StCloudEdina.com - Get a free list of the bank owned properties in Sauk Rapids MN and the surrounding central Minnesota areas
