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Jack
Jack (@guest_1568284)
March 3, 2023 14:44

Shockingly, something like 70%+ of homeowners failed to refinance their 5%+ pre-pandemic home loans when they had the chance during the Fed’s effectively-negative interest rate cycle. That was as of Q3 2021 when refi rates were rock bottom.

Being able to borrow a quarter to half a million dollars at 2.x% over 15-30 years AND getting cash out was an absolutely insane once-a-generation or less macroeconomic event that millions of people missed.

Currently, we are getting PAID for having taken significant cash out at 2.5% and banking it risk-free at 4-9% depending on the instrument.

Dan
Dan (@guest_1568540)
March 3, 2023 20:45

Except, the risk free investment wasn’t yielding 4-9% when mortgage rates were 2.5%. Hindsight 20/20

Jack
Jack (@guest_1568906)
March 4, 2023 14:18

No doubt, and a fair point. However, SOME cycle of rate increase from that historic bottom was inevitable, and even if modest, the sub-inflation rates of 2.x% essentially act as negative rates. The time frame is another factor as one could (though shouldn’t) invest the cash-out in risk assets over a 15-30 year timeline and very likely be quite fine.

wilsonhammer
wilsonhammer (@guest_1568166)
March 3, 2023 12:34

I’ve always thought mortgage bonuses (whether new or refi) are rarely worth it. There’s so much other variability in the cost of buying/refing (rates, closing costs, buying/selling points) that it’s impossible to take a bonus at face value.

Steve
Steve (@guest_1568191)
March 3, 2023 12:53

In this market, unless you buy near the top (recently 7%) it makes NO sense to refi. Most people already refi’d, already had a mortgage sub 5%, or just don’t care/lazy/don’t understand.

Essentially, if the rates suddenly drop to sub 5% and this style offer still is around… yes. It likely makes a lot more sense to consider it.

Arley
Arley (@guest_1568250)
March 3, 2023 14:01

I did several refinances with Better when they ran Amex $2,500 or $3,000 promos and those were great deals because Better was really competitive and would match or beat competing offers. DoC had a full article on it. I doubt anyone that has refinanced before last year will be refinancing anytime soon.

Random
Random (@guest_1568446)
March 3, 2023 18:01

I really do miss that train. The people who were able to take advantage of Better and really milk the system, made out like crazy. I probably profited close to $10K over 4 refinances.

Andy
Andy (@guest_1568447)
March 3, 2023 18:02

YMMV, but I’ve refinanced three times with Citibank and Chase. Every time, they were willing to match or beat my best competing offer, and I was still able to stack the bonuses on top of that.

Citi’s bonus is a % off of your rate (from 0.125% to 0.625% off depending on how much in assets you’re willing to transfer over). So they’d match another lender’s rate, fees, etc. and then I’d stack another % rate discount *on top* of that.

And if you’re transferring a brokerage account, you get the brokerage bonus too.