Refinance
My Mortgage
by:
Kate
I
never really understood how a rate cut at the federal level can help
stop foreclosures, but this article helped bring it down to the basics.
From a home-owner perspective, I just assumed that the mortgage company
followed very cut and dry rules on when to foreclose on a home, but
this article helped me view it from their standpoint.
The mortgage company really does lose money when they
foreclose on
a home – especially if they can’t resell it for the loan amount. If I
loaned someone money and they were having a hard time paying me back,
I’d rather change the repayment arrangement or charge less interest
than to lose the total loan amount. It would take less time and I would
feel better about getting payments in the future if I was a little
flexible now.
OK – so I don’t really understand how the fed cutting
interest
rates really make the mortgage companies change their own rates, but
that’s OK. The really smart finance people out there can understand all
that – I’m just happy knowing that I took advantage of this news to
refinance my adjustable rate mortgage into a flat rate mortgage.
I’m also VERY happy knowing my mortgage company would rather
have
me as a one-time struggling borrower than an owner of my house!
