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"Until now, they've had to go to banks, so tapping longer-term debt helps remove some refinancing risk".
In fact one of those expenses, mortgage-recording taxes, could put the brakes on some refinancing in New York State.
The government has already encouraged some refinancing through the Federal Housing Administration and through Fannie and Freddie, but participation is limited.
Their mortgage payments started at about $1,000 a month, but over the years, in the thrill of first-time homeownership, the Santiagos made some refinancing decisions they now regret.
While fiscal monitors praised that strict policy, some municipal finance experts said that some refinancing proposals could be good deals over all even if they did not show a savings every year.
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Some refinanced a few times a year, taking cash out of their homes to keep making mortgage payments, or to pay down other debts.
Some refinance lenders will let consumers borrow more than they owe on their old loan, or even more than the car is worth -- giving borrowers extra cash to use as they wish, but leaving them deeper in debt than before.
Mr. Pataki said he would close the $5.1 billion gap by freezing hiring at state agencies, putting off growth in most of them, spending about $1.1 billion in various reserve funds, refinancing some debt and obtaining more in federal grants with some creative requests.
Although no one knows for sure, early indications suggest that the amount of the settlement will be about $25 billion, consisting of approximately $5 billion in cash and some $20 billion in workout funds set aside to prevent further foreclosures by refinancing some borrowers at lower principal amounts.
Without refinancing some could be seized by their lenders.
Some owners are refinancing existing mortgages with the corporation, while others are creating new ones.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com