This is not an advertisement for anyone to refi, well I guess in a way it is. Seriously, rates are so low that you’re basically getting free money. After conversations with my well respected friends and clients (not just the bums I drink and hang out with) and researching where the markets might go this year and the near future, now is the time to do something.
Forget all the technical talk. Rates are so low in comparison to any time in the last 30+ years. Here’s a basic graph that I pulled just to show what I mean:
There are far more technical graphs around, feel free to search them out, but you’ll find the same information.
To get a rate that’s below 4% is historically impossible, especially for a 30 year fixed loan. This is money that is locked in and will be a close to free as you’re going to get. God forbid rates get lower, you can always refi again. This is cheap money and I’ll debate anyone who wants to argue the merits of waiting.
2013 is going to be a defining time when it comes to politics and economics crossing paths. The country, and the world, is trying to figure out how to come out of this depression we’ve just gone through (and could easily fall in again). Our country’s politics have never changed so quickly and have never been so easily seen. The 2012 elections and analytical data clearly shows where voters are headed and which voting blocks are growing, which are shrinking and what the future generations believe in. By that I mean, we’ve got a Republican base that’s loosing its traditional footholds to a Democratic majority. Clearly, not every issue is the same but a shift is happening right before our eyes.
Again, I can have hours of debate and write pages of why and what both the Dems and GOP are doing to create this shift. Eventually the gridlock in Washington will stop and the country will start to head into a direction (trying to stay non-partisan but facts are facts and we will be going into “a” direction). As both the economy and politics of the day move forward, so will rates. Take advantage of these rates.
It might seem hard to make any payments. (Trust me; I know from personal experience that we’re living in hard times and every dollar counts.) But if you can make it through this rough patch and come out with a house, owner occupied or non-owner occupied, with rates at 3, 3.5, 4 or even 4.5% you will have set yourself up for success in the future.
No one has a crystal ball, but reality tells us that values will go back up and inflation (of some kind) will kick in. A $1,000 payment now will seem a lot less in five to ten years. So take the plunge and refinance or buy your properties now. You’ll be glad you did.
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