Page 1 of 3 123 LastLast
Results 1 to 10 of 25

Thread: Too good to be true offer!

  1. #1
    Senior Member jp1's Avatar
    Join Date
    Dec 2010
    Location
    San Francisco
    Posts
    8,632

    Too good to be true offer!

    The title of this post is snark. Today we received a letter from our mortgage broker that we can refinance and take out $113,000 if we want. Doing that would increase our monthly payment from $2216 to $3335 and reset our 1 1/2 year old 30 year fixed mortgage to a new 30 year fixed mortgage with the interest rate increasing from 2.2216% to 4.25%.

    We still owe $560,000 on the mortgage so basically we'd be increasing our monthly payment by 50%, extending the loan a year and a half, and getting $113,000 cash in the process. One would need to be quite desperate for the cash to take up this offer. I've already put it through the shredder.

  2. #2
    Senior Member bae's Avatar
    Join Date
    Jan 2011
    Location
    Offshore
    Posts
    10,820
    That's just evil and predatory.

    I suspect the next few years of inflation/recession/... will produce all sorts of scammy fun for us all.

  3. #3
    Senior Member
    Join Date
    Jan 2011
    Posts
    5,121
    Realtor told us today that refi loan officers are getting desperate and some are being laid off

  4. #4
    Senior Member catherine's Avatar
    Join Date
    Jan 2011
    Location
    Vermont
    Posts
    13,613
    Yeah, my mortgage website has a nice chart where you can see how much equity you've accumulated over the past couple of years and you can click on "I want to use my equity"--making it sound like free money.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
    www.silententry.wordpress.com

  5. #5
    Senior Member jp1's Avatar
    Join Date
    Dec 2010
    Location
    San Francisco
    Posts
    8,632
    Quote Originally Posted by pinkytoe View Post
    Realtor told us today that refi loan officers are getting desperate and some are being laid off
    Anyone that didnít refi 1 1/2 to 2 years ago missed out. Back when we bought basically everyone we knew that already owned was doing a refi. Interest rates wonít be coming down for a while so, yeah, thereís not much demand for refi loan officers today.

  6. #6
    Senior Member bae's Avatar
    Join Date
    Jan 2011
    Location
    Offshore
    Posts
    10,820
    To help with cash-flow management, and/or tax planning, for years now I've been making use of a Home Equity Line of Credit from my local small bank. It's fixed-rate, at a pretty decent rate, and they don't seem to mind when I go for years without bothering to use it.

    I suspect it may be helpful in the upcoming recession/stock market unpleasantness.

  7. #7
    Senior Member iris lilies's Avatar
    Join Date
    Mar 2013
    Location
    Always logged in
    Posts
    22,733
    As an old person I have to comment on the days where I was first considering buying a house and interest rates where as high as 16%. Yes that’s mortgage interest rates.

    You young’uns don’t know ‘bout interest REAL interest rates.

  8. #8
    Simpleton Alan's Avatar
    Join Date
    Dec 2010
    Location
    Ohio
    Posts
    8,934
    Quote Originally Posted by iris lilies View Post
    As an old person I have to comment on the days where I was first considering buying a house and interest rates where as high as 16%. Yes that’s mortgage interest rates.

    You young’uns don’t know ‘bout interest REAL interest rates.
    We bought our first house in 1979 and were able to lock in a VA loan at 10%, which I thought was outrageous at the time but soon became thankful to get in before the high teens kicked in.
    "Things should be made as simple as possible, but not one bit simpler." ~ Albert Einstein

  9. #9
    Senior Member
    Join Date
    Jan 2011
    Posts
    3,575
    Yes, I remember 13% mortgage interest. My husband did not invest in Certificates of Deposit at that time but I was more cautious and felt they were very safe. Got a nice return. Learned to pay off all debt too. Those interest payments were irritating.

  10. #10
    Senior Member catherine's Avatar
    Join Date
    Jan 2011
    Location
    Vermont
    Posts
    13,613
    I bought my first house in 1980 @13% interest. I had a friend in my neighborhood who actually put his down payment on credit cards, which sounded horrific to me at the time, but the interest rates on his credit cards might have been better than the mortgage rates.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
    www.silententry.wordpress.com

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •