http://www.everybodylovesyourmoney.com/2008/01/30/one-of-my-favorite-times-of-year.html Living for today - Planning for Tomorrow Wed, 17 Mar 2010 15:11:40 -0700 http://wordpress.org/?v=2.9.1 hourly 1 http://www.everybodylovesyourmoney.com/2008/01/30/one-of-my-favorite-times-of-year.html/comment-page-1#comment-126890 Reb Sun, 03 Feb 2008 17:56:12 +0000 http://www.everybodylovesyourmoney.com/2008/01/30/one-of-my-favorite-times-of-year.html#comment-126890 A friend of mine bought a house with no money down and wanted to take advantage of the drop in interest rates by refinancing. She was told that she has to have a 90% LTV to refinance which would require writing a check to the back for something like 50k. Needless to say she doesn't have that kind of cash, so she's can't refinance. I think a lot of people who bought in 2004 and later are in the same boat. A friend of mine bought a house with no money down and wanted to take advantage of the drop in interest rates by refinancing. She was told that she has to have a 90% LTV to refinance which would require writing a check to the back for something like 50k. Needless to say she doesn’t have that kind of cash, so she’s can’t refinance. I think a lot of people who bought in 2004 and later are in the same boat.

]]> http://www.everybodylovesyourmoney.com/2008/01/30/one-of-my-favorite-times-of-year.html/comment-page-1#comment-125807 Traciatim Thu, 31 Jan 2008 11:49:26 +0000 http://www.everybodylovesyourmoney.com/2008/01/30/one-of-my-favorite-times-of-year.html#comment-125807 The problem is, that people will probably just take their extra 300 bucks a month from a 1.25% drop on their 400K mortgage and go buy a car since that's close to a car payment. People won't think about whet they are going to do next year when rates come back up again (or 2010). Then when the banks decide to squeeze the consumer for more cash they'll be in the exact same scenario they are in today, almost losing their house because they purchased too much home and can't control spending. The problem is, that people will probably just take their extra 300 bucks a month from a 1.25% drop on their 400K mortgage and go buy a car since that’s close to a car payment. People won’t think about whet they are going to do next year when rates come back up again (or 2010). Then when the banks decide to squeeze the consumer for more cash they’ll be in the exact same scenario they are in today, almost losing their house because they purchased too much home and can’t control spending.

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