With the interest rates (already refinanced to the lowest percentage) and the total I owe, I just owe more money every month regardless of what I pay.
Debt refinancing has successfully cut three percentage points from its current bank rate.
That refinancing rate was not only 7.1 percentage points higher than a week earlier but the highest percentage since 1992.
Buy-to-let remortgages rose by 6.2 percentage points as landlords refinanced existing properties instead of buying new ones.
Interest rate cuts by the Bank of England (which lowered short-term rates to 5.25% from 5.5%) and the European Central Bank (which shaved a half a percentage point off its main refinancing rate) also helped drive the market higher.
The Federal Reserve had already reduced interest rates six times, for a total of 2.25 percentage points, encouraging consumers to refinance their mortgages at lower rates and putting more money in their pockets.
The main refinancing rate was raised a quarter of a percentage point to 3.75percenttwo weeks agogo.
Mr. Logue says rates for second-home refinancing are typically about a quarter of a percentage point higher than those for primary residences, which is "not significant, but there is a difference to cover the risk".
One couple certain to benefit is Charles and Lisa Mounts, who bought a vacation house in Goshen, Conn., last July and a few weeks ago arranged for a refinancing loan through Romano Mortgage that is two percentage points lower than their original mortgage.
Using that formula, it is fairly easy for a co-op to determine whether it makes sense to refinance; the amount of the prepayment penalty -- fixed at a predetermined percentage -- simply becomes an additional cost of the refinancing.
