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(The Year 2012 In Review)
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|User Info||Fed: But Ponzis NEVER Run Out Of Suckers!; entered at 2012-06-19 06:54:08|
Registered: 2008-04-03 State of Decay
While the Ticker is correct, there's an important point going unrecognized: those who were already in hock don't have the ability to refinance at lower rates to pay off that loan more cheaply or more quickly.|
I had the exact problem - while I don't have a credit problem, I did have a ~15% mortgage 30 year remaining on my farm at 6.75%. With rates at sub-4% levels, I wanted to refinance into a 5 year loan to pay it off faster at only a tad more money. No go - the bank holding the mortgage was uninterested, and it took me 7 other loan applications to get any bank to make an offer - even tho it would have been secured as the only lien on the property.
I ended up just paying off the balance, but it was a really frustrating exercise. Why no one wanted to make me a loan with so much equity in the property and no other loan on my income plus a bunch of savings can only be explained by the fact that I'm self-employed...at least, I can't come up with any other reason because my credit history is clean.