Why I Refinanced My House at the Bar

I don't go to the bar much. I'm not super social...

I'd rather have a few friends over at my house for a relaxing get-together than spend my time at a loud, crowded bar. But when some old friends came to town a few months ago, I couldn't pass up the chance to catch up.

I was there to relax and spend time with friends. So the last thing I expected was to be reminded of the madness in the housing market. But that's exactly what happened.

The night went mostly as you might expect... just a group of friends enjoying a few drinks, having a few laughs, and catching up on the latest adventures in our lives.

As we were wrapping up, I got in line for the bathroom. That's when I ran into Ben.

Before I knew it, in the bathroom line, I'd decided it was time to refinance my house.

As crazy as it sounds, you could be in the same boat as me.

Let me explain...

Ben is a longtime family friend who is also a mortgage lender. He actually helped my wife and I buy our first house in Northeast Florida back in 2018.

Ben was in line in front of me. And after the initial hellos, we couldn't help but chat about the craziness in interest rates... and how cheap it was to buy or refinance a home.

Back in February, 30-year mortgage rates were hitting four-year lows... And to this day, it has rarely been cheaper to take out a loan to buy a home.

We started to get into the nuts and bolts about why now was a great time to refinance. I told him I was ready.

That's when the bathroom door swung open, and our conversation ended. It couldn't have been more than five minutes. So he suggested that we chat more later, gave me his card, and told me to reach out.

You should've seen the look on my wife's face when I got home and told her about seeing Ben and about our conversation. It was clear she didn't believe me... She just said, "Well, you can tell me more about it tomorrow."

I ended up not calling Ben until May...

I wish I could say I had a good reason – something like, "I definitely knew rates would go lower due to the coronavirus." But the truth is, I just wasn't ready to take on the process.

Fortunately, the 30-year mortgage rate dropped even lower from February to May. Being a little lazy rarely pays off, but it did in this case... and I was able to get a better rate.

I bought my home less than two years ago. Most of the time, that's not nearly long enough to think about refinancing. But these aren't normal times.

Rates have fallen dramatically. And there's a good chance you could benefit from a refinance now, too. More than that, low rates are causing lots of activity in the housing market.

Ben's been darn busy. And thanks to the Federal Reserve, money is pumping into the system and rates are down.

That's good news for housing in general. Tomorrow, I'll share why it could be setting up a frenzy in real estate...

Good investing,

Chris Igou

Editor's note: You might not know this, but real estate is actually the largest asset class in the world. It's worth an estimated $228 trillion... three times larger than the stock market. If you're ready to get in on the fantastic setup in housing today, check out Steve's online event on Wednesday at 8 p.m., Eastern time. He'll share the No. 1 way to get started in this sector... and reveal why now is the time to act. Sign up to watch right here.

Further Reading

"For most people," Porter Stansberry writes, "owning a home can easily be one of the most important and best financial decisions they make." To see it, though, you have to look at the long-term picture... For more on the intricacies of this type of investment, read the full story here.

"Every time we buy something, we weigh it against something else," Steve writes. With housing supply incredibly low, buying a home might seem expensive. But when you consider the factors that influence what you pay, the story is much different... Read more here: A Simple Truth of Investing... And What It Means for Housing.

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Investors have given up on the companies that make up the heart of every real estate boom. And that has set up a great buying opportunity today...

Market Notes



Apple (AAPL)... iconic tech brand
Amazon (AMZN)... online-retail king
Pinduoduo (PDD)... Chinese e-commerce
Wix.com (WIX)... e-commerce platform
Sea Limited (SE)... e-commerce and gaming
Square (SQ)... mobile payments
PayPal (PYPL)... mobile payments
BlackLine (BL)... cloud-based accounting software
Twilio (TWLO)... cloud communications
Zoom Video Communications (ZM)... video conferencing
Electronic Arts (EA)... video games
Spotify Technology (SPOT)... music streaming
Match Group (MTCH)... digital matchmaker
Novo Nordisk (NVO)... drugmaker
Danaher (DHR)... medical supplier
Lowe's (LOW)... home improvement
Wayfair (W)... home goods
Clorox (CLX)... disinfectant


Not many... The market has been rallying from its recent lows.