Posted by oldhippie_IL on 10/7/05 8:27am
Msg #69279

Rates

Have a question for all of you. With rates climbing the way they are. What do you see in the future, lets say, in a year or two.

Reply by Art_MD on 10/7/05 9:15am
Msg #69285

I've seen a gradual change over the last year. Refis have decreased, Helocs have increased.
I think people are seeing the value of property going up, so they are taking helocs. They are satisfied with their 1st mortgage rate to the extent it's not worth the upfront money to refi.
I think you will see helocs continue. Especially by people who have purchased in the last 5 years. Income has increased, value of home increased, so they will take out some equity to improve, upgrade etc.

JMHO

Art

Reply by BrendaTX on 10/7/05 10:42am
Msg #69304

Re: Rates::TEXAS perspective...

** so they will take out some equity to improve, upgrade etc. **

Texan NSAs cannot take advantage of this - take note new Texans.

It will not be there for us. Maketh hayeth whileth the suneth shineth!

Reply by PattyTX on 10/7/05 12:06pm
Msg #69318

Re: Rates::TEXAS perspective...

I agree completely Brenda! It WILL not be there for us.

Reply by BrendaTX on 10/7/05 12:53pm
Msg #69344

Re: Rates::TEXAS perspective...Patty....

what are your thoughts on the 2nd mortgage? Isn't that just a home equity loan? You can only get out of the home what's left in equity after the first mortgage.

got a signing. will check in later.

Reply by B__CA on 10/7/05 12:23pm
Msg #69326

Re: Rates::TEXAS perspective...

Brenda,

Does Texas allow borrowers to take out a regular 2nd mortgage?

Reply by BrendaTX on 10/7/05 12:51pm
Msg #69343

Re: Rates::TEXAS perspective...

Good question. I have to ponder this a bit...do a little research. My first inclination says only HELOCs because I have no other experience with this which says yes.

Reply by MB_AZ on 10/7/05 11:20am
Msg #69313

Here in a few years when the people we are signing now that got an adjustable rate mtg or interest only...they will be refinancing. New homebuyers that received interest only (and there are a lot of them here in Arizona) will want to refi in a few years when they need to start paying on the principal. Just my opinion....

Reply by oldhippie_IL on 10/7/05 3:18pm
Msg #69405

See, I have a ARM right now that goes up next year. I'm wondering if I should refinance now, with a fixed or wait til next yr? Any ideas? Have lenders calling and bugging me. Need help

Reply by RickinVA on 10/7/05 4:03pm
Msg #69422

By all means, do it now. The mortgage rates have, until recently, stayed pretty low, but they seem to be on the way up. With Greenspan saying the ST rates are going to keep going up, and with them going up even with the twin disasters in NO and Texas, I can't see the LONG term rates staying where they are. I have refi'd 3 times in the last 3 years and I have a FIXED rate. You don't want to be kicking yourself next year when the LT rates are a 6.75 or 7% and you could have gotten a 5.75 or 6% in 2005.

Yes, it's possible they could go down, but in the opinion of people who should know, and have published it, they won't.

My humble opinion only, YMMV

Rick