Audio: Real Estate Minute: Mortgage Refinancing On The Rise

Added May 21, 2007

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Summary: Real Estate Minute with Ilyce Glink Mortgage Refinancings Are Rising and That’s Good News for Homeowners

Audio Transcript: The number of foreclosures has risen dramatically since last year, but one piece of news might help take the edge off.

According to the Mortgage Bankers Association, mortgage refinancings are rising. In fact, they’re up almost 50 percent from a year ago.

What’s the cause of this good news? Long-term interest rates have dropped a bit, and are now hovering around 6 percent for a 30-year loan. For homeowners with scary exotic mortgages and interest-only loans, the window to refinance into a longer-term, fixed-rate mortgage opened.

It’s also been an opportunity to refinance a high interest rate home equity loan and combine it with a relatively low primary mortgage.

But for some folks, refinancing isn’t the answer. One listener wrote to ask if he should combine his 8 percent home equity loan with his 5.25 15-year first mortgage. For him, refinancing doesn’t make sense. Instead, he should look for a lender who offers a better deal on a home equity loan.

With practical, informative consumer advice, I'm Ilyce Glink, News-Talk 750 WSB

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