I know that AN is definitely on top of the game and pretty sure that FLU is too.
We’re not talking abut HELOC’S & 2nds,,,
We’re talking about refi of 1st mortgages at a rate that comes with absolutely NO COST to the borrower and in many cases includes additional CASH credit to the borrower.
Who knew 10 years ago that there would be the opportunity to refi 5 to 10 times if somebody wanted to, each time at no cost AND many times pocketing extra cash.
I usually recommend saving at least .25% on at least $200K but it still makes sense for less. The larger the spread, the lower the loan amount can be.
The cash would have been a losing decision after 5-7 years but because they refi’d within a shorter window, they kept the upfront cash and did it again, and again, and again.
I’m pretty sure FLU cashed out well, before he rang the register.
AN posted recently about having enough credit to pay most/all of his property taxes for several years.
**This opportunity will probably never happen again in our lifetimes**
These guys rode the wave…Had they been surfing in Hawaii it would have been an amazing ride.
As far as ‘gambling’ with an ARM, I would never recommend that for anyone planning to hold property long term regardless of the index and/or margin.
It worked for BG, but in the grand scheme she got lucky. AN & FLU benefited each and every time with Fixed rates, all the way down, never risking exposure to a huge swing to the upside.
For most borrowers I always recommend fixed. 10-15-20-30 whatever. The shorter the term, the lower the rate.
I guarantee you that anybody who got a 30yr fixed loan- 15 years ago doesn’t have a 3.00% rate. Refinancing today for 15yrs keeps them on the same track at a much lower payment.
If they keep making the same payment they can possibly shave 5 years and be done in 10 years.
(depending on their current balance, it may be difficult to get no cost)
I do not suggest gambling with the biggest financial decision of their lives. AN & FLU never gambled.
If anybody is so sure which way rates are headed,up or down, learn how to trade on Wall Street. You can make so much money that you can pay cash for a house, why bother with a mortgage.
Symbol TBT (-2x 20YR Treasury) has been a wonderful short the last 5 years, having gone from $134 down to $36. Many people think it can’t go much lower, I have no opinion.
The reality is that most people have no business having money in the stock market controlled and manipulated by various forces and forced to ONLY have long positions.
Most people have no idea how or why to short a stock
or what puts & calls & LEAPS are yet they have substantial amounts of money ‘invested’ in something they really know very little about, and just hope and pray that it goes up. (To me, HOPE is not a strategy)
Managed by 401K plan admin who make money every second of every day managing funds whether the investor ever makes a penny or not.
If investors cant identify stocks that are overpriced and should be shorted they probably shouldn’t be comfortable trying to identify stocks that are cheap.
ALL credit card plans allow transfer of free flights, cruises & hotel nights to friends or family members.
IMO there’s no reason why anyone with good credit shouldn’t be taking advantage of these teaser offers.
