Fixed rate mortgages probably aren’t going to get much lower. Especially as congress plays the stimulus game. 30 year fixed mortgages are somewhat loosely tied to the 10 year treasury bond. As congress tries to play the bailout game the bond market will raise rates to compensate for the freshly printed doleros. Hence it is more than likely, though not guaranteed, that Mortgage rates are going up.
HLS correct me if I’m wrong but I believe that refinancing from one first mortgage into another causes the borrower to lose their non-recourse status. For this person it doesn’t sound like a huge deal, I just wanted confirmation.
