Election and mortgage rates

[noodleoo]

Do you think the results of the election will have an affect on mortgage rates? We're kind of waiting to refinance, hoping rates might drop a little to what they were a few weeks ago. However, even now we could refi and save 0.5%. I'm wondering if we should just do it (in case they go up after the election). I know no one can predict it, but any inclinations that the election do something one way or another?

[tabithasoren]

We decided to lock today because we didn't want to take any chances with the election. I'm not sure if it was the best idea but we decided better safe than sorry.

[Deleted]

I think it depends on how good the country feels about the election results. We actually had the same discussion with our mortgage broker during our last meeting. I do feel it's more likely to increase. So as soon as the rate dropped again to 3.25%, we locked it.

[Deleted]

It took me 5 months and lots of headaches to get my refi done once. I wouldn't refi for 1/2%--lol! (I can see why you would though)

[dr.girlfriend]

Nov 1, 2012 13:03:36 GMT -5 noodleoo said:

Do you think the results of the election will have an affect on mortgage rates? We're kind of waiting to refinance, hoping rates might drop a little to what they were a few weeks ago. However, even now we could refi and save 0.5%. I'm wondering if we should just do it (in case they go up after the election). I know no one can predict it, but any inclinations that the election do something one way or another?

What's your break-even point at 0.5% of a drop? I thought rule-of-thumb wise it's usually not worth it unless it's a 1%-ish drop.

[Mashara]

dr.g, if it's a harp refi, it may be a combination of loan reduction and rate decrease, especially if they're going to be in the house a long time.

[noodleoo]

The refi we are planning to do is no closing costs. My friend has already refi-ed her house with this bank like 4 times in 2 years (and multiple times before that on their old house)! The rates just keep dropping and it costs almost nothing. We just found out they can give us 3.375%, which will save us about $180 a month. So we're just going to do it! Thanks for the advice!