When rates were 4.5%, what was the fair “no cost” rate? (Best qualified borrower, low LTV).
***********************
Probably 5%-5.25%
this is no point,,, NOT NO COST.
To have a total no cost loan rate would be higher, depending on loan amount.
************************************
Why smart people want to gamble with hundreds of thousands of dollars of debt, I just don’t understand.
Penny wise and dollar foolish.
By historical standards, rates are low. At some point people will have “enjoyed” a no cost loan for a few years, AND THEN be stuck in a higher rate and payment for the remaining 15-20-25 years.
They will never clearly understand their foolishness, because they got a free loan, and are happy. (So is the lender!!)
There are millions of people today that are in a higher rate than they qualified for at the time they got their loan, enjoying their “FREE” loan.
They got SCREWED.
In today’s market, it makes no difference that rates are below 5%, these people DO NOT QUALIFY to refi. No chance. ZERO.
They are screwed into the higher rate that they are in, and it will cost them a small fortune in the long run for that free loan.
Financial ignorance is incredible in this country and many “intelligent” people on this website confirm this with their comments about FREE loans being a wise choice.
No wonder Suze Orman gets rich telling people whether or not they can afford something. It’s pathetic that some people are allowed to breed.
Some people think that they are a notch above somebody else because they think that they can figure the break even point of a “no cost” loan.
Most people are clueless in figuring this out correctly.
If/when CD rates get above 7% again, which they probably will, all the geniuses who were in a hurry to pay off under 5% mortgages are going to look really foolish, and if CD rates get to 10%+ again, it will prove these people to have been stupid.
Gamble if you wish on short term gratification, at the expense of long term sense, it’s what this broken economy is built on.
Govt greater plan to keep people financially confused, illiterate, and making foolish financial choices to keep the economy wheels greased has been extremely successful.
