“When you can borrow at a rate below inflation, you’re borrowing for free,” according to Greg McBride. “This is the concept of using other people’s money and it preserves financial flexibility for the borrower.”
It’s a re-fi for the 40th wealthiest person. A re-fi on a 7 million dollar home in Palo Alto, Calif. Life is still good for Mark.
So, what is the interest rate in Hampton Roads? Still hovering around 3-4%, based on income, credit and anything else they can look up on you. Just kidding.
Should you do it? The rule of thumb is only to re-fi if it is more than a point. So, if you are still have a crazy high rate, of let’s say a 6, then you would knock off 2-3 points. Insane savings.
A 6% rate may seem high now, but when my mom first got her license, rates were hovering around 12-14%. Yes, people were still buying. This was also way before the most recent boom, so prices were dirt cheap in comparison to today.
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