Fed Aid Sets Off a Rush to Refinance

Fed Aid Sets Off a Rush to Refinance

www.foxnews.com

At Bank of America Corp., call volume was roughly twice what was expected at call centers and via the Internet, said Matt Vernon, national sales executive. "It's the folks who have been sitting on the sideline. They're jumping in with this news."

Rates on 30-year fixed-rate mortgages dropped by roughly half a percentage point to about 5.5%, for borrowers with good credit scores and substantial equity in their homes, say mortgage brokers and lenders.

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The truly amazing thing about this whole joke of a 'relief' is that these people, who have been sitting on the sidelines, are falling for exactly what the Fed wanted. They will rush out to refi on their home loan, thus starting over the clock on the 30 years.

In other words, they are front loading their payments once again to line the pockets of the criminals that put this economy in the situation that it is with front loaded interest loans. What a freaking joke. And they so artfully played this game out. They convinced everyone of the urgency of the situation (not saying it isn't there) and then come at them with this relief. Hook line and sinker. Instead of paying down the debt they will once again find themselves paying the banks free money.

Pathetic.

www.foxnews.com
(visit the link for the full news article)

First off who has equity in their home right now? Also how many peoples credit has been destroyed by this whole mess? I mean give me a break this is what you call straight up propaganda. No thanks even if I had the equity I wouldnt refinance. Im done putting money in these suckers pockets.

reply to post by mybigunit


Exactly. They paint a grim picture and then come out with "Now the rates are at a very low level. Now is the time to refinance!" Only suckers will rush to take advantage of this. Not realizing that they are simply resetting their loans. It's a criminal act and the banks are what rule this country. Not the government or the people.