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This is secondhand so take it for what it's worth, but I've heard that a lot of these all-cash offers are folks who tap their extended family for spare cash, bu
by Domenic_S 13y ago
This is secondhand so take it for what it's worth, but I've heard that a lot of these all-cash offers are folks who tap their extended family for spare cash, buy the house, then "re"-finance into a normal mortgage and pay the family back. Rates do affect cash buyers who use this strategy.
Also, many cash buyers are flippers, but the flippers need to sell to normals who take mortgages. So impact there, too.
- prostoalex 13y agoI don't think you can refinance, what you can do is take out a home equity loan. Regardless, you can get those at fixed rates or (currently cheaper) ARM rates, I'd imagine someone intending to stay in the Bay Area would choose the former.