Since the ability to refinance or restructure debt is one of the incremental drivers of a profit trough, the importance of this policy change cannot be overemphasized,
Low mortgage rates and strong house appreciation boosted new and existing home sales as well as refinance activity (in 2001), leading to what was surely a record-breaking year for housing, ... Coming into the new year, there are some signs that the recession may have already run its course but no indications that inflation looms on the horizon. Thus mortgage rates remained almost unchanged this week.
Singapore Property Price Index has hit a high of 140 but economic fundamentals are entirely different from the last Asian Financial Crisis. Real estate investors advised to be cautioned with buying and might be a good idea to refinance mortgage debts...
Refinancing activity was very strong in the fourth quarter, even with higher interest rates. The large share of borrowers who took cash out when refinancing their mortgages combined with the strong overall refinance volume led to an extraction of home equity through prime first-lien refinances of 70.3 billion, slightly higher than the revised estimate of 67.2 billion extracted in the third quarter. We expect the share of all refinance borrowers who take out cash to remain high in 2006 because of the relatively high cost of second mortgages and home-equity lines of credit.
Being alert to the terms and conditions of your existing home loan can prevent nasty consequences to you in the future when you refinance.
We believe interest rates will continue to rise and therefore believe the timing is right to lock in long-term rates. Accordingly, the company is considering several proposals to refinance approximately 160 million of its current portfolio with 10-year fixed rate financing. We expect to complete the refinancing by July 1st of this year.
Consumers view their mortgage now as a financial instrument, and depending on their financial condition, may seek a cash-out refinance. They may spend it to buy a car, add on to their house or use it for college. I think we'll see a steady stream of that.
We expect some slowdown in the mortgage business as the refinance boom fades,
We estimate that home equity extraction from the refinancing of prime first mortgage liens will result in an extraction of 243 billion in 2005. However, equity extraction in 2006 will likely fall sharply, by a little more than half to about 117 billion, as we expect lower refinance activity and slower house-price appreciation.
As rates continue to rise, there's less ability for consumers to refinance and take money out of their houses.
Today consumers are looking for everything from auto and health insurance to home equity and refinance loans online. Typically they have to visit multiple websites to get quotes on the various financial services they need. QuoteFinancial. com serves as a single source for financial and insurance quotes and savings online, where most consumers begin the shopping process. Individuals can return to our site again and again for competitive quotes and one-on-one service through our comprehensive network of mortgage and insurance professionals.
It will cost you some money in fees. But in 2007, when the market is at its worst and your mortgage is resetting and you're looking for a lender to refinance you out, you just may not find one.
The refinance share of mortgage applications in the fourth quarter of 2005 was 45 percent while the average rates on 30-year fixed-rate mortgages climbed 0.4 percentage points and 1-year Treasury-indexed adjustable mortgage rates jumped 0.6 percentage points from third-quarter averages. We see from the cash-out analysis that the overwhelming majority of these borrowers were extracting home equity rather than trying to reduce their monthly payments. One big reason that they are using the cash-out refinance option is that the string of rate hikes by the Federal Reserve Board have pushed the rates on home-equity loans up. Home-equity loans are typically linked to the prime rate, which currently is at 7.5 percent. In contrast, the average rate on 30-year fixed-rate mortgages is presently near 6.25 percent.
Right now we think that rates will stay low, that you'll be able to get a mortgage below seven percent and that's kicked off a refinance boom that's going to put more money in the pockets of consumers.
With mortgage rates continuing to slip, a new wave of refinancing has appeared. According to the Mortgage Bankers Association of America, applications for refinance jumped 15 percent last week, near the record high set in March. And according to Freddie Mac's quarterly refinance review, the average age of a refinanced loan fell to 1.9 years in the first quarter of this year.
Going forward, homeowners wanting to use some of the equity in their homes for home improvement or other purposes will make up a larger portion of the refinance business.