wow a** pounding in the market today. Mortgage Brokers Celebrate
3.875% on a 30 year, 3.25% on a 15 year and 3% on a 5/1 ARM
Bam great point and thats what I suggested to him. Its very easy to get a heloc on a home especially when you own it out right. Usually they will give you 50% without even taking a look at you thoroughly. One downside is if you wanted to borrow a good chunk of the LOC and hold it out there for an extended period of time. Heloc's are arm's so the rate fluctuates and this is most people's worries when they take one out, also the terms are generally shorter in duration.
In his situation he wanted a 30 year fixed at these incredibly low rates but today its wasn't feasible until that SS checks come rolling in. Once he starts receiving those I am sure he won't have a problem getting a cash out at .50% over market.
For most people keeping cash in their pocket is more beneficial than buying down the principal balance. Especially in these times. I always suggest to figure out what you would need to have for 1 year of unemployment. After that you should be pretty set for even the hardest times. Then you can spend your cash how you would like to.
This is the reason even a guy this liquid would want to extend a term and have a fixed rate. Cash in hand is the most power anyone can have. And even some of the worlds richest folks would rather borrow than spend theres. I have heard/read some interesting articles of all these financial guru's tell you to keep your cash as much as you can and as long as you can. Even if in the long run you spend a few more bucks paying it in interest. It makes sense even though sometimes its not technically the most financial savy decision