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"The government is no longer investing in infrastructure, the municipalities are no longer paying their bills and the companies are in constant need of refinancing from their banks.
For instance, if you've been in your home for a decade, you may consider refinancing from a 30-year fixed mortgage into a 15-year loan.
And a year ago lingering concerns over the stretched finances of McKillen's broader interests were wiped away after he won refinancing from Los Angeles investment firm Colony Capital.
The bottom line, he said, is that every borrower should "crunch the numbers" before refinancing from an adjustable-rate loan to a fixed-rate loan.
He noted, for example, a spike in refinancing from 1993 to 1994 with the introduction of the hybrid ARM, then again briefly in 1998 and in 2003 when rates dropped substantially.
Steep prepayment penalties discouraged refinancing from occurring until after the higher interest rate had already kicked in.The Federal Deposit Insurance Corporation FDICC), which Ms Bair ran, did a study showing that the "teaser" rates were often slightly higher than the interest rates offered to other subprime borrowers with similar credit scores for thirty-year fixed-rate loans.
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Six months ago, Beth Zucker, a single mother from Bucks County, Pa., whose twins are 13, refinanced from a 7/1 ARM to a 10/1 interest-only ARM at 3 percent.
A banking union will allow institutions to be refinanced from the centre without governments needing to put a hand in their pocket.
Like many Americans, Brandon Laroque, a homeowner from Raleigh, N.C., gets many unsolicited letters asking him to refinance from the favorable fixed rate on his home to a riskier variable rate and to take on new, high-rate credit cards.
It is always a good idea to refinance from an ARM to a fixed rate mortgage.
"They're helping to protect people in their homes and they're refinancing people from a distressed situation," he said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com