Posted by Linda_H/FL on 9/22/08 6:05pm
Msg #264990

Got the shock of my life today..

Did a signing this afternoon - 6.875% 30 year fixed....guy was refinancing because he HAD a 7.5% that was resetting in April to 15%!!! My jaw hit the floor when he said that...the builder of his home arranged his financing for him two years ago - got him a 2-year fixed then adjustable yearly thereafter - substantial prepayment penalty too (he says $24K or so) which he says they waived if he refinanced through the same lender....

Wow was all I could say...15%....wow...

Reply by WDMD on 9/22/08 6:25pm
Msg #264995

"Wow was all I could say...15%....wow..."

Reminds me of the early 80's. I had a 13.5% ARM. And that was a good rate.

Reply by jojo_MN on 9/22/08 8:45pm
Msg #265010

Try 21%. That is what I was paying when I purchased my house in 1981. That was with Good credit. I thought it was fantastic when I got 14% in 1990. Now when I see 8% I think it is outrageous.

Hopefully we will never see those rates again!

Reply by John/CT on 9/23/08 9:04am
Msg #265031

"Hopefully we will never see those rates again!", says jojo MN

Let's see what will be the effect of the so-called "Bail out". I've already heard it will most certainly impact long-term interest rates as the Gov't tries to sell their T-Bonds to finance this venture. OUCH!

Reply by Virginia/PA on 9/23/08 7:11pm
Msg #265110

From what I read of the bailout, it will loosen money to fund lending again - and maybe the rates will be higher, but there will be loans - and there aren't very many now. I too remember the rates of the 80's. So 8% sounds great compared to those days. During the refinance boom everybody thought they were in interest rate heaven. Face it - the rates in the refinance boom were historic LOWS. What we have now is somewhere in the middle. Interest rate heaven was never intended to be permanent. Thus the adjustable rate loans. Duh!

Reply by Virginia/PA on 9/23/08 7:11pm
Msg #265111

From what I read of the bailout, it will loosen money to fund lending again - and maybe the rates will be higher, but there will be loans - and there aren't very many now. I too remember the rates of the 80's. So 8% sounds great compared to those days. During the refinance boom everybody thought they were in interest rate heaven. Face it - the rates in the refinance boom were historic LOWS. What we have now is somewhere in the middle. Interest rate heaven was never intended to be permanent. Thus the adjustable rate loans. Duh!