It's not simply a matter of prolonged high inflation. The Federal Reserve has encountered several challenges in accurately predicting and addressing inflationary pressures. The recent inflation report was particularly concerning, and the financial markets are reflecting this unease. There's a growing consensus that there won't be any rate cuts this year (a viewpoint I share), and some even speculate about the possibility of a rate hike. It's baffling to witness individuals willing to exceed their budget by $200k (a third higher than planned) - it seems financially imprudent. On a related note, recent reports shed light on preferences between refinances and Home Equity Lines of Credit (HELOCs). Interestingly, there's a significant preference for cash-out refinancing over HELOCs. Personally, I find the logic behind this choice puzzling. Why opt for a cash-out refinance on a $600k home at 7.0% interest when one could secure a $100k HELOC at 7% (or thereabouts) and maintain a lower rate of 3.5% on the remaining $500k? Understanding the rationale behind such decisions would be enlightening.
Another informative video! Thanks Alyson .... keep em coming!
Thanks for watching!
great video
Glad you liked it. Thanks so much for watching and leaving a comment!
@@AlysonWahl no problem. I am trying to relocate to Denver area now. So more information is better! 😀
@@williameichenberger Well congrats on that!! Where are you coming from? Is this a "for fun" move, or is a job helping bring you this way?
@@AlysonWahl planning to move on my own but I work remotely and my job gave approval
It's not simply a matter of prolonged high inflation. The Federal Reserve has encountered several challenges in accurately predicting and addressing inflationary pressures. The recent inflation report was particularly concerning, and the financial markets are reflecting this unease. There's a growing consensus that there won't be any rate cuts this year (a viewpoint I share), and some even speculate about the possibility of a rate hike. It's baffling to witness individuals willing to exceed their budget by $200k (a third higher than planned) - it seems financially imprudent.
On a related note, recent reports shed light on preferences between refinances and Home Equity Lines of Credit (HELOCs). Interestingly, there's a significant preference for cash-out refinancing over HELOCs. Personally, I find the logic behind this choice puzzling. Why opt for a cash-out refinance on a $600k home at 7.0% interest when one could secure a $100k HELOC at 7% (or thereabouts) and maintain a lower rate of 3.5% on the remaining $500k? Understanding the rationale behind such decisions would be enlightening.