Then a new mortgage would cost 26 percent more for the same old principal.
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With that market already collapsed, the agencies say they weren't rating new mortgage-backed securities.
Some 45% of all new mortgage borrowing last year was by investors chasing capital gains, not owner-occupiers.
This has prompted more action from the administration, which announced a new mortgage-modification drive on November 30th.
He warned that otherwise new mortgage lending might dwindle to a complete halt.
The simple, entrepreneurial fix is a new mortgage product that would combine debt with equity, something like a convertible bond.
At the peak of the housing bubble, as much as 40% of all new mortgage lending was for investment properties.
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It is not uncommon for parents to take out a new mortgage on their home in order to pay for college.
If lenders won't budge, though, borrowers may need help refinancing into a new mortgage, especially if they owe more than their home is worth.
Her new mortgage payments will be more than they had budgeted for so they will have to go back and budget again.
The rationale is that borrowers will consolidate their credit card debt, where double- digit rates are the norm, into the new mortgage.
This long-run reduction in inflation has made the initial burden of a new mortgage much more affordable than it used to be.
The FHA considers these increases to be marginal and affordable for nearly all homebuyers who would qualify for a new mortgage loan.
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The CML said it was worried that rising inflation would make it harder for people to afford to take out a new mortgage.
Wholesale lenders competed aggressively for market share by undercutting the banks and creating sexy new mortgage products like home-equity, interest-only and low-documentation loans.
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In Australia, where the house-price boom has been driven by the buy-to-let market, investors now account for 45% of all new mortgage lending.
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That's nice for the Treasury, perhaps. (And the taxpayer.) But in that period, the interest rate on the typical new mortgage has gone up.
Now the debt will stick around for much longer and today's new mortgage borrowers will no longer benefit from a rapid build-up in housing equity.
The Nationwide index shows a less dramatic fall, but a decline in the number of new mortgage-loan approvals in July suggests that the slowdown will continue.
He is calling for a temporary guarantee with taxpayers' money of new mortgage-backed securities - the bundles of home loans sold on by banks to investors to fund fresh lending.
Then neither Bank of America (the new mortgage holder), JPMorgan Chase (the old mortgage holder) or my local tax office was willing to give me my money back.
Analysts and industry executives say it's difficult to predict how many of the maturing commercial property loans will wind up in default because they can't secure a new mortgage.
These new mortgage insurance costs add a 1.75% closing cost, or 1.75 points that are tacked on to the loan, along with another 1.35% added to the monthly payment!
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Because of both an abundance of liquidity (money to lend) and the rapid development of new mortgage methods and mechanisms, loans were made promiscuously to a generation of buyers.
Without such intervention net new mortgage lending - gross new home loans minus repayments and redemptions - would fall below zero in 2009 and see only a modest recovery in 2010, he said.
And the housing market is collapsing: prices have fallen by 11% in a year, and the number of new mortgage approvals in July was 71% lower than the same month last year.
The mortgage lender pointed to a continued slide in enquires from new buyers, as reported by estate agents, and the recent drop in new mortgage approvals recorded by the Bank of England.
But what makes Australia's house-price boom look even more fragile than those in Britain or America is the extraordinary importance of the buy-to-let market, which accounted for 45% of all new mortgage borrowing last year.
All those investors rushing for safe US assets have helped to push down the cost of borrowing to new lows, not just for Uncle Sam but anyone in the US taking out a new mortgage.
There are plenty of national housing issues to deal with, such as the new mortgage rules (see above) and the future of housing giants Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA).
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