Fed just raised rates another quarter...if you care...

There are a lot of people shitting bricks...

People KNOW they need to refi out of their ARMS...but the hit is so big. There are people out there in the low 4% on their ARMS...30 Year Fixeds are in the mid 6's. That's a big hit to swallow...(maybe not for Fred or Builder)

 

I see some foreclosures/deals in the not so distant future.

We just bought a new house and got 6.5% fixed. The mortgage guy was talking about ARMs but I told him I wasn't interested. I do have a 5 year ARM on the townhouse we just moved out of though. It's around 4.5% I believe it adjusts in two years. I'm trying to sell that thing as fast as I can.

 

Why so scared of ARMs if youre buying at this point in the cycle? I can see your concern if its a traditional ARM that adjusts every year, but a 5,7 or 10 year at this point is probably a good way to save a quarter or half point on the rate.

If youre buying now, why not get the lower rate ARM, pay it for a couple years, then (no cost) refi when the rates drop to a half a point lower than today's rate? How many consecutive raises has the Fed issued? Sooner or later that trend is gonna reverse some.

Of course, if you can swing a 15 or 30 fixed easily, then thats a good peace of mind option.

 

Because historically...these rates are still very low. Good shot things will be higher in 5 years.

 

Yeah but Trace has a bond portfolio. IE. Previously issued.

Good lord. If we do get a financial forum don't make Freakshow the mod.

 

take this crap to the finance forum

 

Sly...I'm pointing out to Chip that what he posted proved my point. Trace had previously issued bonds. They were going up today as yields were going down.


I was right. No doubt. Promise. Guaranteed.

 

my four month old 5.25 fixed rate sure is looking good right now

 

Not one fucking bit.