Beware the Cash-Out Re-Fi

November 28, 2008 by  
Filed under Loans and Borrowing

This has been a good news week for homeowners looking to re-finance their mortgage loan into a lower rate.  Mortgage interest rates fell sharply this week following more rescue actions by the government.  The average interest rate for a fixed 30-year mortgage loan dropped to under 6%, a seven week low.   Mortgage loan re-financing activity has already picked up.   Unfortunately, re-financing a mortgage loan also creates a substantial risk that the borrower will end up with a larger loan balance.  Read more

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This Week’s Economic Hard Truth

September 13, 2008 by  
Filed under Economics, Loans and Borrowing

Mr. ToughMoneyLove tries to pay attention to economic news because it is science-based and therefore more reliable than the financial punditry that is all over the news and Internet.  In fact, I just finished listening to a 7 CD audio course book on the Principles of Economics, which I will be reviewing soon.  Read more

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