Elise Glink was talking about the soon-to-occur rise in mortgage interest rates on the radio this morning. When Uncle Sam finishes buying (with dollars borrowed at interest, from China) over a TRILLION dollars of mortgage-backed securities in a few months, mortgage interest rates are going to pop up. That is, right when my household budget finally starts trending toward a net-positive cash flow. by the end of the year, we could have 5% to put down, but . . .
. . .by then interest rates will not be at 4% any more. We got in several years ago, when rates were at previous historic lows. We wanted to get a refinanced loan at an even historickier rate*, but we didn't have a down payment. The cost would be additional interest, actually COSTING us money.
Oh well. Maybe by the time my children go to buy their houses (while paying off the MBS t-bills borrowed to pay down YOUR mortgage rate) the rates will be low again, and they will have a down payment..
*Yes I made it up. At least we are in agreeance about the truthiness of the subject of this post.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment