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


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