To: pater tenebrarum who wrote (114608 ) 7/26/2001 4:22:18 PM From: patron_anejo_por_favor Read Replies (5) | Respond to Here's a pretty typical example of how mortgage refi's work here in sunny Phoenix:msnbc.com Michael Herr, a 33-year-old supervisor for a hair-dryer manufacturer near Phoenix, has refinanced his home three times in four years. The first transaction, in 1998, produced $25,000 in cash, which Mr. Herr and his wife, Shannon Kaiser-Herr, used to reduce credit-card debt and pay private-school tuition for three of their four children. Their mortgage-interest rate held steady at 9%, but the mortgage grew by almost a quarter, to $128,000. Their monthly payment rose to about $1,100, from $1,050.This year, the Herrs, who had combined 2000 income of about $78,000, went back for a third refinancing. They tapped $20,000 more of the equity in their home, which was appraised at $165,000, up 19% from four years ago. Mr. Herr says his mortgage broker, State Mortgage, told him this would have to be the last time. With a new $160,000 mortgage, the Herrs have only $5,000 of equity left in their house. Their interest rate is now down to 7%, but with the bigger loan, their monthly payment is up to about $1,200.
