Midas Supporter ++
- Aug 1, 2011
- Reaction score
- low country sc
We lived in a really nice condo prior to our present place. Not an official 55 and over but with the exception of a couple everyone there was over 65. Virtually everyone had a mortgage, most 80% of value. When places went up on the recent rise and rates under 3%, they all refied to get out as much cash as possible. Some of these folks are 83+ with serious health conditions, a 30 year fixed loan that current 80% was several hundred thousand above purchase price. Now if market prices hold, guess all is well, but normal turnover has that place flipping 50% of the units in eight years. BTW, they are probably facing an assessment of 100k+ on top of the $800/month HOA and $3500 yearly in taxes.....some arms in that chart are fixed for the first 15 years. that gives one 15 years to refi. a good bet, because frbny prefers to keep rates as close to zero as possible for (the banker) bonus pools.
that 4.x rate for 15 years is a GREAT deal -- and then have the option to refi when fixed rates fall again to 4 or 3 or 2