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CNN Live At Daybreak

Mortgage on the Move

Aired June 09, 2003 - 06:17   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now though. E*TRADE is taking a new approach to home loans, making them portable.
Let's go live to Susan Lisovicz in New York.

Portable, huh?

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Yes, I mean it's really a novel approach. But no question about it, Carol, these are great times for homeowners or perspective homeowners. A 30-year mortgage hit a new record low of 5.26 percent last week.

Now E*TRADE is letting consumers lock that low rate in and take it with them when they move to a new home instead of paying off the loan and applying for a new one with potentially higher rates. The so-called portable loan is available only to homebuyers and not to homeowners who want to refinance.

E*TRADE originated $6.2 billion in mortgages last year. That is actually far less than 1 percent of the overall $2.5 trillion in U.S. home mortgages taken out last year.

Now what's good for the consumer isn't necessarily going to be popular for mortgage brokers, that's most lenders rely on brokers to drum up business. But presumably brokers won't like it because that would cut into future sales. But for right now, it's a limited offer and you can take advantage it -- of it on E*TRADE -- Carol.

COSTELLO: All right, we'll be looking for it.

Susan, you'll be back with a look at the futures later in the hour.

LISOVICZ: I will.

COSTELLO: All right, thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired June 9, 2003 - 06:17   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now though. E*TRADE is taking a new approach to home loans, making them portable.
Let's go live to Susan Lisovicz in New York.

Portable, huh?

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Yes, I mean it's really a novel approach. But no question about it, Carol, these are great times for homeowners or perspective homeowners. A 30-year mortgage hit a new record low of 5.26 percent last week.

Now E*TRADE is letting consumers lock that low rate in and take it with them when they move to a new home instead of paying off the loan and applying for a new one with potentially higher rates. The so-called portable loan is available only to homebuyers and not to homeowners who want to refinance.

E*TRADE originated $6.2 billion in mortgages last year. That is actually far less than 1 percent of the overall $2.5 trillion in U.S. home mortgages taken out last year.

Now what's good for the consumer isn't necessarily going to be popular for mortgage brokers, that's most lenders rely on brokers to drum up business. But presumably brokers won't like it because that would cut into future sales. But for right now, it's a limited offer and you can take advantage it -- of it on E*TRADE -- Carol.

COSTELLO: All right, we'll be looking for it.

Susan, you'll be back with a look at the futures later in the hour.

LISOVICZ: I will.

COSTELLO: All right, thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com