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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (54872)	9/7/2001 6:05:56 PM
From: Tradelite	Read Replies (2) \| Respond to of 57584

You are right, but there's another motivating factor in the proliferation of refinances.....It's the continuing hype from the lending industry about the "value" of refinancing to get lower monthly payments--and these cats have dreamed up every way in the book to convince borrowers that refinancing can be done at little to no cost. The rule of thumb used to be that if refinancing couldn't reduce your mortgage rate by at least two, and later, just one percent, it wasn't worthwhile. Now they encourage people to refinance to achieve half a point. I refinanced years ago from 9-1/4 percent to 7-1/4 percent and certainly could save something today by getting down to somewhere in the 6's----but I'd have to pay for a house appraisal, a termite inspection, recertification of the lot survey, a new deed and recording charges, and other fees which the lenders have managed to "hide" from borrowers with hype. The charges are simply rolled into the loan amount. There is no free lunch, but people today are told they can save "$600" or so per year by refinancing. To some people, this is worth the trouble of going thru the paperwork and hassle, but not to others.