Maybe It's Time to Buy Washington Post, United States - Don't borrow to buy stocks. Don't use your eating money or next year's college tuition money to buy stocks. Don't bet on having a much better year ...
Execs brace for plunge with typical Dallas grit Dallas Morning News, TX - Yet they can't shake an innate belief that Big D will emerge from the havoc faster and in better shape than the rest of the nation. ...
Huntsman proposes jolt for Utah economy Salt Lake Tribune, United States - It includes incentives to get people back to buying homes, borrowing money to keep road construction crews on the job, and pushing ahead with state ...
Sub-6% mortgages fail to spur refinancings Buffalo News, United States - The year-end holiday period doesn?t make it any better. ?Interest rates have certainly dropped, but we haven?t seen any mass rush to refinance,? said Nancy ...
The credit crunch San Diego Union Tribune, CA - Dec 6, 2008 They start using their credit cards to pay their living expenses and when they get so high that they can't borrow any more, they end up filing for ...
Grim Job Report Not Showing Full Picture New York Times, United States - Dec 6, 2008 The family has paid its bills by dipping into its savings and borrowing money from relatives. But Ms. Perkins said that unless her husband found a job in ...
Automakers' fourth-and-long plea CNN - Dec 5, 2008 This time the auto industry leaders came with detailed plans submitted earlier this week on how they would return to profitability if they get the federal ...
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Recent News and Articles on the Keywords: time + power + 308,000 Related to the article below (Last Update: 8/4/2008)
UPI NewsTrack Business United Press International - Aug 1, 2008 In the month, those working part time involuntarily rose by 308000 to 5.7 million, a category that has increased 1.4 million in the past year, ...
Brian Johnson - Lehman Brothers Seeking Alpha, NY - Aug 2, 2008 You can see production volume down 308000 units. Clearly American Axle had an impact in that but again, recognizing the challenging marketing conditions, ...LEH
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Accretion in the Early Outer Solar System - SJ Kenyon, JX Luu - The Astrophysical Journal, 1999 - UChicago Press ... Printed in USA. DOI: 10.1086/308000. ... proceeds, increases, but the slope of the smooth power law remains ... Cumulative size distributions as a function of time for a ...
[CITATION] L. Kemeny THE PRACTICAL PROBLEMS AND ISSUES PERTAINING TO NUCLEAR ENERGY IN LESS-DEVELOPED COUNTRIES NE IN - The Economics of Nuclear Energy, 1984 - Chapman & Hall
A method of automatic data path synthesis - CY Hitchcock III, DE Thomas - Proceedings of the 20th conference on Design automation, 1983 - portal.acm.org ... some other element, that is active at the same time as element A ...308000 6odooo o08000
Total Area (Square Mils) ... on a chip, or parts count, or total power consumed ...
[PDF]Design of the Robotic Tendon KW Hollander, R Ilg, TG Sugar - Design of Medical Devices Conference (DMD 2005), 2005 - robotics.eas.asu.edu ... can reach its peak power in a period of time inversely proportional ... then (P s ) max =
15420 W, and the ?power to weight? ratio becomes 308000 W/kg. ...
Rheological criteria to characterize metallocene catalyzed polyethylenes - JF Vega, M Fernandez, A Santamaria, A Munoz- … - Macromolecular Chemistry and Physics, 1999 - doi.wiley.com ... range from M ? w = 80000 to 308000, the polydispersity ... were used: a) Viscosity and
relaxation time dependence on ... of the exponent n of the power law model for ...
Time course of gene expression in rat experimental autoimmune myocarditis - H Hanawa, S Abe, M Hayashi, T Yoshida, K Yoshida, … - Clin Sci, 2002 - cs.portlandpress.com ... 103000(30.0?9.6), 476000?39200(44.4?3.7), 308000?72700(28.7 ... McDonald, KS (2001) Loaded
shortening and power output in ... and cancer cell lines by real time RT-PCR ... -
An Advanced Present Value Formula J TZUR, HB YAARI, V YAARI - papers.ssrn.com ... to a customer who expects growth in his earning power over time... Because the formula
is time-saving ... 12 316,000 197372.7 13 312,000 187379.1 14 308,000 177862.3 15 ...
Modelling of energy use patterns in the residential sector usinglinguistic variables G Michalik, W Mielczarski - … Systems Applications to Power Systems, 1996. Proceedings, … - ieeexplore.ieee.org ... Page 4 a 400000 A 308000 30O 250000 + 200000 ... behaviour leads to averaging energy
use patterns in time. ... crucial parameters for daily scheduling of power stations ...
A Diffusion Model for Fatigue Crack Growth - KP Oh - Proceedings of the Royal Society of London. Series A, …, 1979 - JSTOR ... The well-known power law for crack growth rate ... As time passes, however, it becomes
increasingly likely that ... In fact, after N = 308000 cycles (figure 2c), the ...
Scintillation-type ion detection for inductively coupled plasma mass spectrometry - LQ Huang, SJ Jiang, RS Houk - Analytical Chemistry, 1987 - pubs.acs.org ... A scintillator material with a short decay time (2 ns) and an inexpensive ... the detector
chamber so that rf interference from the quadrupole power supply was not ...
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Borrowing power gets better with time
By: Jack Guttentag
"We currently have a first and second mortgage, with plenty of equity left. We would like to take advantage of the current low rates and consolidate the two mortgages into one. Lenders are telling us, however, that because the second is less than a year old, the new loan would be considered cash-out and carry a significantly higher interest rate. Why is this, and is there anything we can do about it other than wait for a year to transpire?"A cash-out refinance is one for an amount in excess of the balance plus settlement costs. If the borrower has a mortgage balance of $150,000 and settlement costs are $5,000, for example, any loan larger than $155,000 is a cash-out refinance and will carry a higher interest rate.
The major reason for the higher rate is that studies of delinquency and default indicate that borrowers who do a cash-out subsequently have poorer payment records than borrowers who don't. The presumed reason for this is that borrowers who need cash are financially weaker than borrowers who don't, and in some cases they may be in financial distress.
What has this to do with your recent second mortgage? Lenders assume that second mortgage borrowers are cut from the same cloth as cash-out borrowers. While you don't need cash now, you did need cash just a short time ago when you took the second mortgage. If you were in financial distress then, perhaps you still are.
This inference of possible financial distress weakens over time as you continue to pay your first mortgage on time. The rule is that after a year of prompt payments following the second mortgage, a new refinance will no longer be considered cash-out.
Is there anything else you can do other than wait? If you used most of the second to improve your house, you can appeal the decision. Spending the money on the house increases equity and indicates that there was no financial distress associated with the second mortgage. But be prepared to document the case.
SECOND MORTGAGE VERSUS HOME EQUITY LOAN
"What are the differences between a second mortgage and a home equity loan?"
The terminology is confusing. A second mortgage is any loan that involves a second lien on the property. Some second mortgages are for a fixed dollar amount paid out at one time, in the same way as a first mortgage. As with firsts, such seconds may be fixed-rate or adjustable-rate.
A home equity loan (HEL) is a second mortgage also, but instead of being paid out at one time, it is structured as a line of credit. (They are frequently referred to as "home equity lines"). An HEL allows the borrower to draw an amount at any time up to some maximum. They are always adjustable rate.
A line of credit is most convenient when your cash needs are stretched out over time. A common example is a series of home improvements, one followed by another. College tuition payments are another.
Fixed-dollar seconds are best when you need all the money at one time. Many home purchasers take out such seconds to avoid mortgage insurance on the first mortgage.
When taking a fixed-dollar second, borrowers can select between fixed and adjustable rates, as they prefer. When taking an HEL, they take an adjustable, and if they want a fixed they refinance into a fixed-dollar second after they have drawn as much as they intend to borrow on the line.
The writer is Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.
