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OT: Mortgage Rates

Not a bad article but still skips over Margin Calls. It's why you'll see Mtg Cos closing in the next 90 days and Deephaven, while not the 1st, is the biggest to go at this point. Any Mtg Co backed by a Hedge Fund is in the danger zone.

When there's this much leverage in the system the only question is which domino falls first.
 
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While this shop talk is interesting (seriously, it is), really all I want to know is if I should refinance now or wait. It the answer is to wait, what is my go signal?
 
While this shop talk is interesting (seriously, it is), really all I want to know is if I should refinance now or wait. It the answer is to wait, what is my go signal?


Depends on current rate. If you can get in the 3's, yes and then you'll get low 2's high1's in 6-8 months. Find a good Mortgage person:)
 
Depends on current rate. If you can get in the 3's, yes and then you'll get low 2's high1's in 6-8 months. Find a good Mortgage person:)

What he's not saying about that time frame. 6 months is the September/October crash season. Crash season happens because of mutual fund redemptions (people cash out) and a few other factors (like say... an election and who might or will win... repositioning the big boys for the next 4 years). That's right... the 2008 crash was made significantly worse because Obama got elected. The whales in the market had to switch gears.

(Edit : I know I know the election was after. Vegas has odds on these things and people on the inside with that money generally KNOW things like this)

Now you can argue the chicken and egg principle on whether bonds go up in value (yields go down) because the stock market goes down or that the stocks go down because bonds are going up .. doesn't really matter.

In other words... the rest of the year is going to be a turbulent bastard.
 
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@Trumplestiltskin how about this article explaining what is happening?

https://www.mbshighway.com/mortgage-crisis.html


Perfect article...especially the Unintended Consequences under the Mark to Market part. Understand THAT and you will understand the PRIMARY issue and danger. While the populace pines for rapidly declining Mortgage Rates, they have zero concept of what happens behind the scenes...as with anything...a gradual decline is best, allowing for proper cash flows. People cannot even comprehend the cash required on any given day and WHY, when working in this industry, the PRIMARY question to ask is how is the Company funded and what is their cash position. We had a Margin call in the upper 10s of millions we had to float for 60 days...we'll get it back upon Product Delivery..but many Mtg Cos cannot stroke that check and it's...lights out for them...
 
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@Trumplestiltskin how about this article explaining what is happening?

https://www.mbshighway.com/mortgage-crisis.html


On a side note...if you want to know the looming issue...there is, typically, just under 2 Trillion $$ in Mtg transcactions per year. What is coming in the next 12 months is going to open up 11 Trillion $$ in Mortgage that could benefit from a refinance...this doesn't count the Purchases. There is going to be a HUGE liquidity crisis for improperly funded Mtgs Cos. There will be absolute oceans of money made and lost and rates will be down for a long, long time.
 
What he's not saying about that time frame. 6 months is the September/October crash season. Crash season happens because of mutual fund redemptions (people cash out) and a few other factors (like say... an election and who might or will win... repositioning the big boys for the next 4 years). That's right... the 2008 crash was made significantly worse because Obama got elected. The whales in the market had to switch gears.

(Edit : I know I know the election was after. Vegas has odds on these things and people on the inside with that money generally KNOW things like this)

Now you can argue the chicken and egg principle on whether bonds go up in value (yields go down) because the stock market goes down or that the stocks go down because bonds are going up .. doesn't really matter.

In other words... the rest of the year is going to be a turbulent bastard.


6-8 months has NOTHING to do with "crash season", whatever that is. It has EVERYTHING to do with economic effects not yet baked into the cake and Govt intervention.
 
Is now the time to pull the trigger on refinancing? Or is there a good chance the rates will go lower? We have a 30 year fixed at 3.8% right now. I can get it at 3% thru our lender right now.

We plan on spending at least another 5-10 years in our house so I’m not worried about the closing cost.
Any one know what VA rates are generally at now?
 
6-8 months has NOTHING to do with "crash season", whatever that is. It has EVERYTHING to do with economic effects not yet baked into the cake and Govt intervention.

Agreed. These things just work that way sometimes. Think of it another way... there's a reason history tends to rhyme or repeat slightly differently.

It doesn't just all play out in a day. Usually.
 
Any one know what VA rates are generally at now?

Around 3.5%. Rates MAY VARY greatly by Lender. Ginnie Issuers will be substantially LOWER than a Broker as they can sell the asset easier. I've seen them from 3.5 up to 5.25 in the last few days. We're a GInnie Issuer so we are on the lower end of the spectrum.
 
So many questions. I’m a new member of London’s community and don’t know the system quite well, how it works and on what I should keep my eyes on. Because of that ignorance I thought it will be the best thing to share mortgage details to Mortgage Advisor London before signing them. As, always the smallest letter that are hidden have the most important information that could give a negative impact in case of some situations. Different mortgages offers different conditions, want to know which one will be the best for me and hopefully everything will go positively till the end.
 
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With the direction housing is heading, we'll end up below 1%. Its the only bullet they have left to prop up the industry.
 
Yeah while I'm not mad per se that I shaved almost a full % off our rate, I clearly would have gotten much more to wait. The extra cash in-pocket each month and getting rid of the credit card balance made it all well worth it though.
 
The interest rate of credit companies affects a lot, so you should be careful before taking a loan. I remember my first experience with this issue, and for me, the most favorable option was this: https://www.yhdistalaina.com/pikavippien-yhdistaminen/
The interest rate from this company turned out to be the most suitable for me because I looked at other options and did not find anything more interesting than this.
However, these services will really be effective in your case, so you definitely don't need to worry.
 
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