Refinancers crave cash on top of lower monthly payments

Article Abstract:

Refinancing activity increased sharply in 1998 as more homeowners opted to lessen the cost of their mortgage debt while interest rates were at historic lows. The growth of refinancing activity was also aided by the decision of many homeowners to adjust their personal financial portfolios by taking equity out of their homes to invest in other assets. Many borrowers, encouraged by low interest-rate spreads, also opted to avail of cash-out refinance schemes, which accounted for some 51% of the mortgage-swapping deals signed in 1998.

Mortgage Bankers, Real Estate Credit, Economic aspects, Finance, Services, Interest rates, Mortgage banks, Homeowners

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The mortgage toolbox: helping you refinance

Article Abstract:

Borrowers refinancing their mortgages can calculate DVO1, today's dollar value of 1 basis point paid over time, to help choose financing based on how long they plan to hold their loans. The implied DVO1 equals the difference in the number of points divided by the difference in mortgage rates. Borrowers' personal DVO1s can be calculated by incorporating the number of years they expect to hold their mortgages with the discount rate. Other factors to consider when refinancing include tax implications and personal considerations.

Mortgage Bankers and Brokers, Measurement, Interest, Interest (Finance)

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Comparing refinance boom

Article Abstract:

A comparison of the refinancing explosion that occured in 1986-87 and 1992 was carried out in terms of mortgage products, loan value and equity levels. The information from the Federal Home Loan Mortgage Corp revealed a prevailing preference for 15-year fixed-rate mortgages during both periods. It also highlighted the role of the Treasury yield curve in determining borrower's choice of refinancing product and the higher proportion of borrowers who put cash back into their housing in 1992.

Loan brokers, Statistics, Federal Home Loan Mortgage Corp.

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