Re:S&P 500 drops 9%, extending losses after 15-minute tradin...
by a3n on Monday March 16, 2020 @10:02AM
(#22592761)
Serious question: Is this now a good time to refinance a home mortgage? Or should we wait until negative interest rates, which would surely set up the minimum positive mortgage rates. Or does it become irrelevant to mortgage rates at some point?
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Re:S&P 500 drops 9%, extending losses after 15-minute tradin...
by mathieutd on Monday March 16, 2020 @10:11AM
(#22592843)
Mortgage rates have moved surprisingly little. They usually trade at around a 2% premium over the 10-year government bonds for a 30-year fixed. Right now that would mean about 2.8% but my local bank quotes 3.5%. My guess is that spread is going to shrink over time but who knows. I'm waiting...
Re:S&P 500 drops 9%, extending losses after 15-minute tradin...
by edoceo on Monday March 16, 2020 @10:23AM
(#22592931)
It dipped last week, but popped back up from refi surge. I'm thinking to give a few weeks to settle. Hoping to see 3.0
Re:S&P 500 drops 9%, extending losses after 15-minute tradin...
by toast0 on Monday March 16, 2020 @10:37AM
(#22593077)
Setup a spreadsheet to show how many months it takes to payback the refi costs at today's rates. Then see how much lower the rates would have to go for the payback to be a reasonable number of months again. If you don't think the second one is going to happen, maybe wait for a bit lower before doing a refi, but who knows if it'll go lower.
Other things to consider right now. If your job goes away, and it's hard to pay your mortgage, it might be better to be on an existing loan and not a new loan.