- The average rate on the popular 30-year fixed rate mortgage, which had been sitting for days at 4.40 percent, fell sharply to 4.34 percent, the lowest in over a year and 19 basis points lower than a year ago.
- The rate had surged to over 5 percent at the start of November, which caused home sales to fall sharply in December and January.
- Looking at the 30-year fixed rate on a $300,000 mortgage, every 25 basis point move down means a savings of $50 on a monthly payment.
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All these are result of yield curve inversion…Spreads are narrowed to lowest level that banks are struggling to sell loans.
With this, it is better to change the ARM into 30 year fixed and cash out refinance. Even if we do not need money, get the cash out and keep it to invest later.
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Cash out and lose? Most people will lose money when they have a cash out. Only the best can use it wisely.
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Is lose come from people didn’t use that money wisely?
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Losing the money, is it persons mistake or cash out mistake?
If you do not do plan and execute correctly, you are wasting a great opportunity (once in decade) to into rock bottom of (stocks or real estate) investments.
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Right. So cashout is good only for the wise people. 90% of the population should not do it.
Out of the 10% who can use cashout wisely, only half get lucky to buy the right investment at the right time