[quote=LesBaer45]
In this thread I’ve seen no discussion around the possibility that all these “re-financiers” get dropped to a 4% loan, and then instead of spending the money on mass consumption (stimulating) they instead keep paying the same payment and pay down/off their mortgage ASAP?
Yes, yes, I get the ‘can’t change human nature to spend see sdr new car’ bit, but maybe being that close to the edge for so long changed a majority of them into wanting out of the whole debt trap thing and actually owning the house. If they are so far underwater and simply want out, then they should have strategic defaulted a long time ago.
Assuming this is worked out and placed into production, I’m thinking it might not have the effect they are looking for.[/quote]
It’s what I did when I re-fi’d a while back. Actually – even worse… I upped my payment to pay it off even sooner. (Only a few years left. Woot woot.)
