Mortgage Rates, Post Jan. 20

[LazyLavey]

Who has the crystal ball? @Tamalewagon

Daughter is in the process of a refi. Broker advises to wait til Trumps in office for closing thinking rates will come down.

I know the broker has her best interest in mind due to my daughter is buying out her very recent ex-husband who is being an absolute fuck and putting pressure on her to get it done asap.

So unfortunately time is of the essence as he is constantly trying to change their agreement, with no benefit to her, based on time.

My thought is rates wont come down over night....??....

 

[Xring01]

Who has the crystal ball? @Tamalewagon

Daughter is in the process of a refi. Broker advises to wait til Trumps in office for closing thinking rates will come down.

I know the broker has her best interest in mind due to my daughter is buying out her very recent ex-husband who is being an absolute fuck and putting pressure on her to get it done asap.

So unfortunately time is of the essence as he is constantly trying to change their agreement, with no benefit to her, based on time.

My thought is rates wont come down over night....??....

IMHO…
Fed is most likely going to cut the rates one more time in the next 6 months… unless he gets fired by Trump. AND THAT IS ON THE TABLE RIGHT NOW!

I honestly do not think its in Trumps best interest to cut rates. One of the key reasons he won, was due to the average voter was pissed off because of inflation. Cutting the rates - spurrs spending - spurrs inflationary pressures… = pissing off average voters.

If the government can reduce deficit spending… that will also remove lots of inflationary pressures.

So back to your daughters predicament. REFI now to get rid of the head aches and move on in life.

If the economy recovers enough to drop rates a few times in the next 18-36months, and it makes sense, then refi again.

But thats MY OPINION… Disclaimer… I have never been in the mortgage industry. I pay attention to FED and Markets for my investments/401ks/personal financial planning.

 

[LazyLavey]

exactly what I'm encouraging her to do .....

 

[Tamalewagon]

Just for clarification...the FED lowering their rate does not guarantee lower mortgage rates. The last two FED reductions have led to higher interest rates. There is talk about the intended tariffs causing higher inflation which will make rates climb again. I would suggest refinancing now.

If she is in California, have her give me a call.

 

[coolchange]

What are the tax ramifications

 

[CLdrinker]

My experience with divorce. Do what it takes to get it over with.

The sooner it’s done the sooner life can restart and you can be happy.

 

[hallett21]

I would refi asap. Worst case is that rates fall and you refi in 6-12 months. Assuming it penciled then.

 

[mbrown2]

Refi asap and get him paid... Worse case rates go down, value goes up or rates don't go down and value goes up and she is paying him more... There is more hedge on pricing inflating over a longer period than rates making any sizeable movement down. We can also reasonable count on if rates drop, likely volume would move and possible prices move up which means value goes up. She knows her variables with the key being the value of the property. She does not know those if rates go down over an extended period.

 

[240Hallett]

Would there be a tax incentive to get it done before the end of the year?

 

[Tamalewagon]

Would there be a tax incentive to get it done before the end of the year?

Probably not...ask your CPA. However, keep in mind the comments I made earlier about the upcoming tariffs and Fed movements. If you are in CA, I'll quote you.

 

[LazyLavey]

Thanks all... we're working on doing it yesterday...

Git er done and move on!

 

[dnewps]

Rates are a product of the market not the fed. Specifically the US bond market. A downturn in the economy causes people and institutions internationally to seek safety and purchase US bonds. Bond price up means yields down…lower rates. So if you believe we are going into a golden era…refi now. If it’s going to be a bumpy ride…refi later.

Nobody on earth has a crystal ball.

 

[boatnam2]

If she has the means, get 'r done, way things are anymore price will go up more that the loan amount will go down.