It’s happening on car notes too.
Unlike real estate cars rarely appreciate and even though I warn people they still think the car will be worth more than they owe so they can just refinance it.
“people they still think the car will be worth more than they owe”
Wow. People really think that?
Of course, if you keep cars ten years like we do and pay it off in four years, that does come true. We have six years with no payments and the car is worth a lot more than the remaining debt (which is obviously zero).
It doesn't make any sense to refinance a car now. I took a glance at my credit union's auto loan offerings. If you have a 5 year 3% auto loan it doesn't make any sense to refinance into a 6% auto loan. The best current rate is 4.75% for 2 years.