Refinancing -- these banks should be ashamed

S

SideShowBob

I read an article this morning on dropping refi rates so I punched up rates at a few banks. The rates they are charging are absolutely outrageous. Nearly all rates are at 50 year lows (or more) yet mortgage rates from major banks are not???? Of the banks I looked at only Wells Fargo is offering a good rate -- low enough I may consider refinancing. Or I'll just do the teaser rate then let Uncle sam bail me out.

Anyone got a good bank for refinancing other than Wells Fargo?
 
It just amazes me how the banks need our deposits to lend, and they need our tax dollars to bail themselves out of bad bets.

Yet we get nothing in return, no interest on out deposits, and we pay thru the nose for a loan while they get free money at our expense.

What wrong here?
 
Quote from SideShowBob:

Maybe the fed should just make mortgages directly available to peons like us. I could use a 0.25% mortgage :D
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Could be whats happening. Banks won't pass on the free money so the Fed will do so.
 

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If banks are truly competing with one another, then retail rates will come down.

My guess is they *are* competing (I'm not big on conspiracy theories) but are hurting too much to lend at lower rates.
 
Quote from SideShowBob:

Maybe the fed should just make mortgages directly available to peons like us. I could use a 0.25% mortgage :D
More...

Can you pay it back overnight? :)

Actually you can get a 90 day mortgage for free, better deal than overnight loan.

Seriously, I think it will eventually come to legislation or assistance getting that margin down. I'm convinced the Fed will focus to recapitalize the banks from hereon out through asset inflation (forcing the housing market up) more than direct cash infusion (TARP, interest on reserves, etc) from hereon out.
 
Quote from stevegee58:

If banks are truly competing with one another, then retail rates will come down.

My guess is they *are* competing (I'm not big on conspiracy theories) but are hurting too much to lend at lower rates.
More...

Maybe the 1st half of TARP wasn't enough.

Maybe Paulson should ask them all "How much do you want before you lend at lower rates?"

And then he should just give it to them - but make sure there are no conditions that they have to lend any money, because you wouldn't want to spook them.
 
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