NAMB Poll Reveals 63.4% Unable to Refinance

Goodness.  This is surprising.  That "insuffieient equity" figure isn't going to get any better in some markets for a while.

Thanks

Surprising, but I suspected this would happen! Call me uptight when it comes to financing, but my theory on COFI and COSI MTA interest only type loans (or the multi-option loan payment loans) is that for the most part, the people who are the best suited to handle such loans wisely are the very ones who have the fortitude and wisdom to not prefer them or be cautious of them in the first place, and thus be more likely to never purchase or refi with such a loan! (Of course, this is not because the loan itself is bad, but merely because it begs for stretching oneself thin! A greater boon to most, due to limited self restraint in this area.)

Although, Ed, I know you are not talking specifically about those type of loans. ARMS scare me, not because they are not a good loan option, but because it takes enormous amounts of self-discipline to not "abuse" them as a buyer/refinancer, meaning not overleveraging yourself or putting yourself in a situation where you could lose your house because you can't afford to make payments, etc.

I also anticipate that in the next few years, we are going to have a plethora of houses flood the market and it will be by far a buyer's market over a seller's... not to mention the impact and possible drop/slack in homes sale prices...

sad.... the market gives people a chance to own a home, and they cannot keep their credit up to refi later.