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Refinance proposal has kink.(FRIDAY HOME GUIDE)(MORTGAGE Q&A)
Washington Times, The, March, 2008
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Byline: Henry Savage, SPECIAL TO THE WASHINGTON TIMES
Q: My wife and I took out a five-year balloon mortgage in 2003. The rate is only 4.50 percent and has been great.
Since five years is almost up, we received a letter from the lender explaining that we need to pay off the loan or convert it to a fixed-rate loan for the next 25 years.
They are offering the conversion at 6.75 percent with a $500 fee. The balance is now $292,000, down from the original balance of $320,000.
From your column, we understand that you do not recommend paying points when refinancing in order to ...
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