cdg

We May See Mortgage Rates Fall to 3.5%

Other variables for the individual to consider are the mortgage interest deductions for a 3.5% mortgage versus what they are writing off with their current mortgage, and what the need for the write-off will be down the line depending on their income. Are those refinancing retiring soon, or in ten years? Do they have defined benefit plans working for them and can budget this new amount, making their monthly payments lower? The low rate sounds very appealing to many, but there will be "unintended consequences" to the banks if inflationary period sets in, as cited by others. Perhaps someone can develop a model for a 15 year fixed rate refinancing deal, and see whether that better suits borrower and lender both. There are benefits initially to individuals, but there can be problems for the system in the long term.