You guys know a lot more about economic trends than I do.
Here's the scene: The DD has a house with a fixed mortgage of 6.5. (I think that's the rate.) In one year, it is due to change over to an ARM. The ARM will be tied to the Lidor rate. She is afraid of the instability of an ARM.
Last week, her broker said she could get a mortgage at 6and 1/8. This week the rate is 5 3/4.
She wants to do the refi before the election, fear there, too.
Given the current state of the economy, do you think mortgage rates will continue to sag, as the feds try to prop up the economy? Or will they take off.
The house is currently (after a big drop) worth $800K (This is CA!) and the mortgage would be about $525K. They have good incomes, good debt to income ratio, and good credit. With 3 kids there is not a lot of wiggle room for them if the rates spike up, so this is why her concern.
Advice please, and thank you.
Here's the scene: The DD has a house with a fixed mortgage of 6.5. (I think that's the rate.) In one year, it is due to change over to an ARM. The ARM will be tied to the Lidor rate. She is afraid of the instability of an ARM.
Last week, her broker said she could get a mortgage at 6and 1/8. This week the rate is 5 3/4.
She wants to do the refi before the election, fear there, too.
Given the current state of the economy, do you think mortgage rates will continue to sag, as the feds try to prop up the economy? Or will they take off.
The house is currently (after a big drop) worth $800K (This is CA!) and the mortgage would be about $525K. They have good incomes, good debt to income ratio, and good credit. With 3 kids there is not a lot of wiggle room for them if the rates spike up, so this is why her concern.
Advice please, and thank you.
