Follow the herd and show stupidity has an incredibly dumb advice column on refinancing – the cash-in refinance:

Cash-out refinancing gained popularity when home values were rising fast, and homeowners wanted to tap their home equity to put money in their wallet. Today, some borrowers are doing the reverse, bringing cash to the closing table when they refinance their home loan.

“Consumers are a lot more conservative now,” said Anthony Hsieh, chief executive of, an online direct lender. “They’re utilizing their cash now to invest into their mortgage… they’re not using it to buy boats or RVs or taking large vacations.”

In the very next paragraph:

These homeowners see record-low mortgage rates as an opportunity to save money over the long haul, especially at a time when other investment vehicles are lackluster. A borrower with $10,000 to invest might decide a mortgage is the best place for their money, allowing them to pay down a chunk of their debt while getting a low rate, said Amy Crews Cutts, deputy chief economist for Freddie Mac.

“The Fed doesn’t intend to start raising interest rates for a while… you’re not going to make money in CDs,” she said. “The stock market is giving people heart attacks on a daily basis with its ups and downs.”

So, let’s get this straight…you can borrow money cheaply, very cheaply, in fact cheaper and ever before. And you know rates are going to go up. And the mortgage refi ‘professionals’ are telling homeowners with equity to put money in? Are you kidding?

These guys are the same con-artists who told their clients to take money out of the homes when prices were inflated and money was easy. Now that money is cheap and it is announced that this is only a temperary condition, they want their clients to put money in????

These loan ‘professionals’ should have their licenses revoked.


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