Some will but cashing out equity when you get a lower rate is a lot easier than

May 18, 2022
3:59:34pm

johnnybyu All-American

cashing out equity and getting a higher rate. The former could keep your payment about the same, the latter could double it.

This message has been modified

Originally posted on May 18, 2022 at 3:59:34pm

Message modified by johnnybyu on May 18, 2022 at 4:02:30pm

Message modified by johnnybyu on May 18, 2022 at 4:12:58pm

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johnnybyu

Bio page: johnnybyu
Joined: Jun 6, 2002
Last login: May 5, 2024
Total posts: 14,808 (1 FO)

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Messages

Author

Time

Hope you've got equity in your house.

Niiineteeen84 Blowhard

5/18/22 11:55am

What a disaster

TNT

5/18/22 11:58am

Housing only goes up though?

JollyGreenGiant

5/18/22 11:58am

RE: Housing only goes up though?

Hotlanta

5/18/22 12:05pm

Equity in a home is pretty worthless and fictional unless you sell or leverage.

byubyu

5/18/22 12:00pm

But it is leverage and protection from recession consequences, including

fbguru

5/18/22 12:11pm

There are very few things I think the government touches and makes better.

crack

5/18/22 12:10pm

Dammed if you do, dammed if you don't. This is the end result every time the Federal government tries to intervene to

SingleStrapBackpack

5/18/22 12:11pm

lol. Having to post with "dammed" is peak CB

letthewookieewin

5/18/22 12:13pm

Pretty sure you can go ahead and use "damned" when used in the context in this post (ie condemned to suffer in Hell)

Greg Kite's 'stache

5/18/22 1:48pm

They'll let the loans pay off themselves

NJBYUFan

5/18/22 12:23pm

What are borrowers refinancing into though? we'll never see better rates than

Iman23

5/18/22 12:26pm

I could see rates getting pretty low again in 2 years as Fed tries to get us out

johnnybyu

5/18/22 3:57pm

That works well when people have an incentive to refinance. But nobody has that incentive when rates are on the rise and

SingleStrapBackpack

5/18/22 12:35pm

I agree there a not attractive refi choices however

NJBYUFan

5/18/22 1:02pm

Of course they will. But you said the average buyer refis or sells every 2-3 years. That's dependent on a lot of refis.

SingleStrapBackpack

5/18/22 1:24pm

people cashing out their equity are still refinancing even with the higher rates

Gente_Boa

5/18/22 1:08pm

Yes, some will do that now but there is a limited pool of people that will do that. And if/when prices decrease due to

SingleStrapBackpack

5/18/22 1:24pm

Yes, but many loans will also be paid off due to people moving

Gente_Boa

5/18/22 2:16pm

That is all also true, but it doesn't lead to people moving or doing a refi every 2-3 years, which is the claim this

SingleStrapBackpack

5/18/22 2:33pm

I think that could change if rates don't come back down, people are going to

johnnybyu

5/18/22 4:00pm

Some will but cashing out equity when you get a lower rate is a lot easier than

johnnybyu

5/18/22 3:59pm

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