Seattle Residential: I Do That: Low Rates! Let's Refinance!

Low Rates! Let's Refinance!

Where is the BOOM

In This Post

The Wall Street Journal has some answers

An article in the Wall Street Journal asks why there hasn't been a refinancing boom with interest rates at unprecedented lows. You would think that with rates at 5% and below there would be long lines at the banks. The Journal, of course, goes on to give some reasons. It just isn't getting any easier to deal with these financial giants.

  1. About 1/4 of all mortgage holders are underwater and would have to bring significant cash to the table to do the refi.
  2. Higher fees for those that do qualify make it seem not quite worth the hassle.
  3. Those who have a 1st mortgage and a HELOC would only qualify as a "cash out" refi and then they don't get the good rate.

So the banks may be missing out on some income they could earn by being reasonable. But they're not. Another case of that industry failing to meet the needs of the public. Remember when no one flew because airline ticket prices were just too high.

Maybe someday we'll see real change in the banking industry.

 

 

 

 

Glenn Roberts
Retired

 

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Comment balloon 3 commentsGlenn Roberts • March 03 2010 09:11PM

Comments

Sometimes it seems like the banks are consciously trying to hurt their own business. I'm not a banker but as a business person I know markets grow when they respond to customer need with a quality product that is affordable.

Posted by John Thomas, EcoBroker, MSEE, MBA (E3 Green HOMES) almost 11 years ago

It is almost as if the banks operate outside the needs of the consumer---interesting dilemma

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections Inc.) almost 11 years ago

Banks will one day realize that they are serving rather an entity to be served and supported by the governemnt!

Posted by Gary L. Waters Broker Associate, Bucci Realty, Fifteen Years Experience in Brevard County (Bucci Realty, Inc.) almost 11 years ago

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