Our board has decided to refinance our existing mortgage with an interest-only mortgage.
The charity claims the bank persuaded it to support the bank's existing mortgage with an interest rate hedge product as a "zero cost" option, when the reality is that its loan servicing and debt exposure has actually increased.
There is to be no reduction in the principal amount of the mortgage, but FHA-guaranteed refinancing at today's amazingly low rates would be permitted for anyone who wanted it, so long as they had a minimum credit score of 580, and an existing mortgage with a principal amount within the FHA's limits ($271,050-$271,050-$729,750
Ameriquest's business model used high-pressure sales techniques to push homeowners with existing mortgages into new loans with sky-high interest rates.
More important, they say, are possible defaults by people with existing mortgages.
People buying homes would be eligible, as would those with existing mortgages who wish to refinance.
I think–I hope though that the government doesn't go through a program of bailing out irresponsible home purchasers, bailing out people with existing mortgages.
As existing mortgages are paid off with lower rate government loans, the holders of those mortgages will have a cash inflow that will allow them to make new loans to people who, because of lower mortgage payments, will now be qualified to purchase other things on credit.
Instead, he wants lenders to offer their entire range of products to all customers.At present, lenders offer cheap rates to tempt new customers, so borrowers who shop around get better deals than those who stick with their existing mortgages.
Too many existing mortgages and mortgage securities were being valued with no known bids, roughly the equivalent of having little or no equity in them.
