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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (44627)	11/1/2005 4:31:42 PM
From: russwinter	Respond to of 110194

In the third quarter of 2005, the median ratio of old-to-new interest rate was 1.09, or one-half of those borrowers who paid off their original loans and took out a new one had an interest rate on their old loan that was at least 9 percent higher than the new interest rate, the report said. > This is worded a bit confusingly, but it appears to mean about half the new refi debt had a rate lower than the old one. But how is that determined? Teaser rate that are lower? Of course payments themselves aren't lower, because they extracted more debt. In fact how are lower rates on refis even possible, something doesn't smell right, as almost all existing mortgages are well under 6.25%: idorfman.com What about the other half above the median? Obviously not saving much at all. I question the whole ratio here, as clearly there are few mortgages out there other than using a scam index () that reset rapidly, or teasers, that would save on interest rates. () When I walked into CFC in July they were pushing pay option "hang yourself" ARMs that uses a trailing average of the 1 year constant Treasury Maturity, the oldest month drops off first and is replaced by the new month: Sept, 04: 2.12 Oct, 04: 2.23 Nov. 04: 2.50 Dec. 04: 2.67 Jan. 05: 2.86 Feb. 05: 3.03 Mar. 05: 3.30 Apr. 05: 3.32 May 05: 3.33 June 05: 3.36 July 05: 3.64 Aug. 05: 3.87 avg preceeding 12 months: 3.02% Sep. 05: 3.85 3.16% Oct, 05: 4.31 3.36% ad nuesuem