Jump to content

"There is no stock market."


Whom do you think is running out of time?  

22 members have voted

You do not have permission to vote in this poll, or see the poll results. Please sign in or register to vote in this poll.

Recommended Posts

  • Replies 47
  • Created
  • Last Reply

My mortgage bank is offering to refinance with no cost.

 

I am through 6 years out of 30 year.

 

Current rate is 5.125 (Paid 2 points to get it down from 5.5 Now the points are recovered)

 

New rate is 4.375 (30 years) or 4.5 (20 Years)

First choice reduces my monthly by about 18%. Second choice increases payment by about 5%

 

Anyone in the mood to offer free advise?

 

They pretty much want to the answer soon. Freddie has basically made my account eligible for the new program. And bank doesn't know how long it will be like that.

 

Thanks

 

Take the 30 year and keep your payments the same. Pay off you loan sooner that way.

 

Unless you can earn more than 4.5% in something safe, then, if you have the cash, you should pay it off. If you do not have the cash consider how long it would take to pay it off if you could pay the maximum you possibly could each month and decide if the payback period is such that you would recover the fees. Perform the exercise using the assumption that you just pay down the existing mortgage with no fees against the alternative with the lower rate.

 

Under any and all circumstances, if competing returns are less than the after tax mortgage rate, then you should pay it off as fast as possible. Otherwise you are just feeding the banker bonus pool.

 

 

Thanks to goose and Doc for their answers.

Link to post
Share on other sites

Seriously, what in the hell was that all about...it was like the machines were having an affair with 10,000. Light up the cigarette.

 

and my dad on his death bed out of no where said those very words to me..."there is no stock market"...freaked me, my sister, and my mom out. We kept asking what do you mean ? He never answered and died the next day. We still talk about it.

Link to post
Share on other sites

Bears couldn't get it done again...running out of time now....

 

 

ok, i mean your charts rock

 

but, i keep thinking it's the PTB that are the ones running out of time

 

See poll at top of page.

 

Lurkers- You have to register to vote, to vote. No party affiliation necessary.

Link to post
Share on other sites

JPM may be giving up on manipulating the precious metals markets

 

Jessie's got the story:

 

http://jessescrossroadscafe.blogspot.com/2010/08/bye-bye-blythe-jpm-shutting-down-their.html

 

"JPM recently suffered heavy losses in their proprietary commodity trading provoking a high level review by top executives."

 

Amazing how with all the inside info, access to talented traders & expensive computer systems, they can still manage to lose their asses in the financial markets. But then there are no financial markets. They are just an illusion, of course.

 

Reminds me of that Buffett quote "With enough inside info, and a million dollars, U can go broke in a year."

Link to post
Share on other sites

My mortgage bank is offering to refinance with no cost.

 

I am through 6 years out of 30 year.

 

Current rate is 5.125 (Paid 2 points to get it down from 5.5 Now the points are recovered)

 

New rate is 4.375 (30 years) or 4.5 (20 Years)

First choice reduces my monthly by about 18%. Second choice increases payment by about 5%

 

Anyone in the mood to offer free advise?

 

They pretty much want to the answer soon. Freddie has basically made my account eligibl ne for the new program. And bank doesn't know how long it will be like that.

 

Thanks

 

 

Thanks to goose and Doc for their answers.

 

 

Mish answered one of his readers having a similar issue....you can look for it on his site.

 

My response would be as follows:

 

Try and see what the catch is, if any...."more" points at closing, or other hidden T&C's (terms & conditions)

 

Assuming everything is on the up and up, then:

 

[1] You can go with Doc's theoretically correct answer

 

or

 

[2] If you have a view on rates, and you believe that rates are going to be low like today forever, again, Doc's is the right approach -- assuming no better return and taking into account the tax benefit of interest deductions

 

but if you have a view that rates go up "materially" over the course of the next decade or so, then you are going to be kicking yourself in the head for not being able to take that cash and invest at higher rates (especially if they spike)

 

[3] You can wait and see if rates go even lower, although assuming there is no incremental closing costs, I don't know why you would wait

_______________

 

I find these offers to "good risks" quite curious, and it leads me to believe that the banks are looking to lock in those "good risks" before rates drop even further, it also tells me that the banks want to be long duration at these levels, which again, tells me they either know or are forecasting even lower from here, as insane as that may sound

 

2.25% for a 30-Year fixed?

 

Can you imagine?

Link to post
Share on other sites

That Dow 10,000 level is something else isn't it? I can remember having lunch at a Chinese restaurant some time after the attacks on September 11, 2001 in Jacksonville. I'm sitting there eating my grub and two preppy douches walk in and look at the TV screen. The one goof goes, "Wow, the Dow is above 10,000." Public relations games at their finest. :rolleyes:

Link to post
Share on other sites

JPM may be giving up on manipulating the precious metals markets

 

Jessie's got the story:

 

http://jessescrossroadscafe.blogspot.com/2010/08/bye-bye-blythe-jpm-shutting-down-their.html

 

I find this statement (from the farticle), and similar ones like it about other banks, almost unbelievable....I must be missing something

 

 

According to a person who has been briefed, JPM will eventually be shutting down ALL proprietary trading in all markets in response to financial reform. This will include fixed income and equities which are much larger departments at the bank.

Link to post
Share on other sites

I find this statement (from the farticle), and similar ones like it about other banks, almost unbelievable....I must be missing something

 

 

According to a person who has been briefed, JPM will eventually be shutting down ALL proprietary trading in all markets in response to financial reform. This will include fixed income and equities which are much larger departments at the bank.

 

If the banks all did this, would it crash the illusory stock market? Is it possible banks are threatening to crash the market & the economy if certain financial reforms are made into law? Just like they apparently threatened to crash everything if the government didn't bail them out in 2008? Give us what we want or we'll take our big banker balls and go home?

Link to post
Share on other sites

I find this statement (from the farticle), and similar ones like it about other banks, almost unbelievable....I must be missing something

 

 

According to a person who has been briefed, JPM will eventually be shutting down ALL proprietary trading in all markets in response to financial reform. This will include fixed income and equities which are much larger departments at the bank.

I don't suppose there could be something like a consent decree involving the SEC wanting to close down GS's competition, could there?

Link to post
Share on other sites

Archived

This topic is now archived and is closed to further replies.

Guest
This topic is now closed to further replies.
  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    No registered users viewing this page.

  • ×
    • Create New...