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Realistbear

Mortgage Lending Surges In U S Also - Highest Since 1990

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http://money.iwon.com/jsp/nw/nwdt_rt_top.j...ias/money/cm/nw

Tuesday May 2, 11:54 AM EDT

NEW YORK -(Dow Jones)- As interest rates continue to rise, the percentage of first quarter 2006 loan refinances done for the purpose of extracting cash - known as cash-out refinances - rose to its highest level since 1990, Freddie Mac (FRE)said in a quarterly report Tuesday.
Cash out refinances - defined as loans that, when refinanced, resulted in loan amounts at least 5% higher than the original mortgage balances - rose to 88% of Freddie Mac (FRE) owned loans that were refinanced in the first quarter.
That's the highest cash-out refinance level since the third quarter of 1990, and up from 81% of refinanced loans in the fourth quarter of 2005.

:o:o:o

This kind of MEW is setting the housing market up for a crash that will make the Great Crash seem like a soft landing. Highest level of MEW to get cash out since 1990??? Horrific.

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http://money.iwon.com/jsp/nw/nwdt_rt_top.j...ias/money/cm/nw

Tuesday May 2, 11:54 AM EDT

Cash out refinances - defined as loans that, when refinanced, resulted in loan amounts at least 5% higher than the original mortgage balances - rose to 88% of Freddie Mac (FRE) owned loans that were refinanced in the first quarter.

This kind of MEW is setting the housing market up for a crash that will make the Great Crash seem like a soft landing. Highest level of MEW to get cash out since 1990??? Horrific.

Have I got this right?

A refinance as above on a property worth 100k with a mortgage of 50K would result in a total debt of 100K +5%? Or does it mean the refinance loan will result in a total debt of 50K + 5%.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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