| Refinancing: Don't Waste Time Wondering, Just Do It
If you're not changing the term of your loan ... even dropping your rate by an eighth makes sense because you did not have to change anything to get a loan," says Bob Walters, chief economist for Quicken Loans. "It always pays to get a lower rate." Say the current balance of your 6.5%, 30-year fixed mortgage is $250,000 and you are making monthly payments of $1,580. If you refinance into a loan of the same size that's one percentage point lower, 5.5%, you've dropped your monthly payments by about $160 to $1,420. But let's say you want to take out extra cash to pay off $20,000 in credit card debt: You'll need a new loan of $270,000. And even with that higher amount, your monthly payments are still reduced about $50 from your current payments to $1,533 a month. To determine how your monthly mortgage payments will differ under a new loan, use a mortgage-refinance calculator to determine the savings you might receive.
Alberta to miss climate talks
In fact, I'm politically conservative, fiscally conservative, socially liberal and environmentally conservative. In other words, I like to protect what we have.
Another concept to look at is the 'Iterated Prisoners' Dilemma', exploring how to get personal maximum gain in a non-zero-sum game. There doesn't have to be a loser for every winner in most human situations. One of the most successful strategies is 'Forgiving Tit-for-Tat'. It leads to the surprising conclusion that enlightened self-interest leads to social altruism and maximum benefit for all.
Please do some reading and come back with fresh eyes. Posted 29/01/08 at 10:45 AM EST | Alert an Editor | Link to Comment .
Mortgage-rate reset needn't be crisis
THIS WILL BE a brave new year for U.S. homeowners with adjustable-rate loans. Terms will be tougher for the credit-challenged. Fewer bargain teaser rates will be offered. And for those facing higher resets on adjustable-rate mortgage payments, it's time to negotiate. If your mortgage is ratcheting up to a monthly payment you can't afford, you may have some leverage in lowering the rate. Your lender may even welcome the move and allow you to do a low- cost loan modification. To date, some $150 billion in adjustable loans have reset with $300 billion more in the pipeline, according to the Federal Deposit Insurance Corp. The greatest number of mortgage-rate increases is likely to hit borrowers this year. In many cases, your lender may call you first to see if you want to modify your loan's terms.
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