The party isn’t going to end anytime soon.
Riding the wave that AN & FLU did may or may not end.
AN can adjust his payment and pay his loan off in 15 years if he wanted to, his payment would still be less than when he originally bought
Lenders do not keep 30 year loans. They are originated and sold to FNMA/FREDDIE who bundle them into GNMA’s that are sold worldwide.
Most people DO NOT do what I do & what AN & FLU did. (Most of my clients do)
If a GNMA loan portfolio is $100M and a few loans get paid off early, so what.
The crazy new account bonuses that credit card companies make are insanely profitable overall or they wouldn’t do it.
They want you to pay annual fees, over the limit fees and late charges. many people do, but you don’t have to.
Read the fine print. Understand the rules. 1st year usually free.
Using credit cards responsibly is the next best thing to free money.
The mortgage option & credit card game has been going on for years. Enough money is made off of the masses to pay for the few that ‘maximize’
I’ve been doing it for many years.
It’s all just a fun game that anybody can play.
The lower a loan balance gets, the higher the rate needs to be to cover for a no cost loan.
As my schedule permits, I’m happy to explain an exact FREE analysis for anyone who wants to contact me with specifics for their situation. no cost, no obligation.
I just explained a $110,000 no cost savings to a Pigg.
Easy explanation.
(I don’t want to argue with anal engineers about .125% less and how no cost isn’t really no cost because if you paid something you’d get more)
It’s mind boggling how many people have 4%-5% or higher loans who can qualify to refi and just dont get it.
For those who cannot qualify, it’s just sad.
Conventional loans have not had prepay penalties in a long time.
Prepays were on sub-prime loans and were made illegal about 6-7 (?) years ago
