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Is the Refi `Apocalypse` Really Upon Us?

Is the Refi `Apocalypse` Really Upon Us?

LoganMohtashami | Jan 30, 2013 01:23 PM ET It`s here already Anyone who could refinance already did last year an barring a HARP 3.0 program all that is left is the scraps from HARP 2.0 I told you a while ago 3.75% is the kill switch for refinances and if rates stay this high and go higher you will see a major YOY decline in refinances Logan Mohtashami

Sterph1 | Jan 30, 2013 01:24 PM ET Flip a coin on QE3+ but agree if it ends then rates up & if not then down for mortgage rates. IMO many in 30 year fixed between 3.5 & 4% will refi if 3% comes...or in my case if 2.5% available for 15yr fixed (stability plus low rate & quicker payoff). Either way think we`ll know in next few months.

ckoffend | Jan 30, 2013 01:35 PM ET The same idiots that bought houses they couldn`t afford 5-8 years ago and refinanced out every single penny of equity will make more mistakes and wait to buy for house prices to rise and mortgage rates to rise. Once again, they`ll complain that it is the bankers fault. Stupid people always do stupid things. These people will keep doing this. These are the same people that pulled their 401K investments in Febuary of 2009 at the bottom and put their funds into money market funds. They missed 3-4 years of great returns and are now just starting to put their money back into investments - at or near the market highs. But it won`t be their fault - no, it never is their fault. Stupid people are never wrong in their own minds.

Earth_Scientist | Jan 30, 2013 01:40 PM ET I don`t see how they can refi people at 3%; who would ever buy that loan (besides The Fed) ? The default risk has to be >3% over 30 years. It makes no sense. Why not normalize rates to about a 6% fixed mortgage for 30 years, and have the buyers bid what they can actually afford to repay (which will also lower the default rate) ?

deano61 | Jan 30, 2013 02:37 PM ET People, stop refinancing. If you want extra money in your pocket, pay your freaking house off. Kicking the can back to 30 years every few years will save you nothing. I can`t tell you how many numskulls I know had 5 years left on their mortgage only to refinance back to 30, while still patting themselves on the back for thinking they are financial geniuses. My house was paid off after 15 years (15 yr mortgage). Many ask me why I would pay my house off when rates are so low. If you ask that question, you have far more problems than just a mortgage.........

rugby11 | Jan 30, 2013 02:43 PM ET The extra money people have from lowering their mortgage payment will go to pay higher taxes. There`s goes that green shoot of more money in peoples pocket for getting a lower rate!

Beringer | Jan 30, 2013 03:08 PM ET deano61 - While I agree most people w/ 5-years left on their mortgage shoud not be refinancing into a 30, the idea that you should pay your mortgage off ASAP is not the best approach for many people. My interest rate is 2.75%, and I get a third of that back at the end of the year making the rate closer to 1.8% One can take those funds and put them in say a Franklin Muni fund paying about 4.5% double tax free. Or you could put them into MLPs paying you 6-8% again w/ almost no tax liability for years. Obviously there are a host of other income earning investments you could put the funds into as well that pay WAY over 1.8% after tax. Yes, paying down the mortgage sooner rather than later is better, but rushing to pay it off in full at the expense of ea

Beringer | Jan 30, 2013 03:10 PM ET Yes, paying down the mortgage sooner rather than later is better, but rushing to pay it off in full at the expense of earning more money than you`d be saving is not really the best idea.

juDiamond | Jan 30, 2013 03:25 PM ET I have refi `d my home 3x in the last 18 months thanks to Quicken Loans They are the absolute best. I pity when rates go to 6 or 7%, many will puke and soil their shorts. 2011 and 12 will look like the good ole days.

Earth_Scientist | Jan 30, 2013 03:55 PM ET Any chance we can call this the `Refi Cliff` or the `Mortgage Cliff` ???






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