re: Still on the Learning Curve - 30 year mortgage better than 15 year mortgage?

quote:

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Everyone is refinancing out of the 3.25% into 4.25-4.5% to get the equity that just came back. Just stuck on that hamster wheel They will refi again at 5.5 or 6% when they need even more money or when life changes which it always does Or they thought they were smart by getting a HELOC at a low rate and will combine that when prime increases drastically into a 30yr at whatever rate Nothing stops whether rates increase or not Its a scam that all Banks sit back and chuckle about im sorry if you cant understand that

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Everyone is doing that, eh? Everyone??? Really? Thank you, Lord, for not making me a sheep among the ""everyone" herd.

Hyperbole aside, I'm still struggling to understand how your concerns would be unique to the 30 year fixed rate and what exactly you think makes it a "scam". People with 15 year products and ARMs don't do cash out refis, or refis in general? I'm also struggling to understand how you're dealing with this many people who would refi out of a low rate mortgage in order to get cash, when helocs and seconds are available for their $20k+/- short term funding needs.