Shopping now is smart.

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

Shopping for a first time mortgage or refinancing is smart right now, the rates are lower and the mortgage industry could use the business.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Jbarto,

You are right and this has been really a much discussed topic recently in this forum that rates are cooperatively lower now. So this is really a good time to buy a house or refinance the mortgage.

Best of luck,
Larry

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

Rates are still in the 5's for a 30 year mortgage. Many people will miss the boat as rates seem to be going up.

jameshogg

Hi,

Rates are slightly up from what it had been next week but even then it's a good time to buy a home or refinance.

Jbarto, it is true that lower rates can increase the volume of the buisness. But again, lower rates can also mean that borrowers not capable of managing a mortgage could jump over this opportunityand buy a home and later on when rates are on a high, they'd drag along with their loans.

I found an interesting discussion on why rates are going up . Please have a look.

Thanks

gmakerley · Posted: Fri Feb 15, 2008 10:18 am Post subject:

Jbarto, it is true that lower rates can increase the volume of the buisness. But again, lower rates can also mean that borrowers not capable of managing a mortgage could jump over this opportunityand buy a home and later on when rates are on a high, they'd drag along with their loans.

James - your paragraph confuses me. please explain.

it looks like you are saying that people purchasing now who cannot afford higher rates, but who would get today's lower rates, would "drag along" something - rates? values? high/low?

jameshogg · Posted: Fri Feb 15, 2008 10:54 pm Post subject:

Hi george,

What i wanted to emphaisze on is, there are borrowers who often don't realize that they can't afford much and tend to go for loans they cannot manage. Although there are lenders to guide them but yet this has been happening in the market and that's why so many people have been in foreclosure.

So, I meant that people willing to buy a home often don't take the right decision as to whether they should buy now or later. Current rates may be good for them but if they go for ARMs say for eg, they may not be able to afford it later on if they don't analyze their financial situation properly.

Had i mentioned the ARMs, things may not have been confusing for you. Smile

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