Two days ago you suggested that everybody refinance into a higher interest rate in the thread “Why don’t all exotic loan borrowers refinance now?”
Quote:
“If everyone with a teaser intro rate, an I/O loan, ARM, would apply for a 30 year fixed rate loan, we would not see the massive foreclosures discussed here.
Why doesn’t everyone just refinance?” End quote
ALL teaser rates I/Os and ARM in the last 4 years are considerably below the current 30-year rate.
Maybe SOME of these people are sensible and following your advice (at least the ones that are capable of refinancing at the higher rate). So, sometimes people in their right mind would refinance into a higher rate if it lower’s their risk and exposure to changing rates.
