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American Morning
Minding Your Business: Refinance Now!
Aired October 25, 2002 - 09:24 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.
PAULA ZAHN, CNN ANCHOR: If you're one of those folks who have been waiting for mortgage rates to go lower, you may have missed the boat.
Andy Serwer here to break the bad news.
Andy, good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Paula, that's right, Mortgage rates have ticked up over the past couple of weeks. While the stock market went up, mortgage rates have gone up at the same time. Yes, they have ticked up significantly enough to impact how much money you would pay per month. Let's get to that right now. Here is how much rates have gone up. They call those basis points, people in technical jargon. It's gone from 5.98 to 6.31 in the 30-year fix, ticked up across the board. What does that mean per month? Let's go to the next screen and it'll show you. It's about 14 to 16 dollars more per month on those mortgages. And, Paula, that adds up over the year.
But what I want to emphasize here is do not abandon your quest to refinance your house just because rates have ticked up a little bit here.
ZAHN: Why not?
SERWER: Because there they are still historically low and they're still at a point probably where you will save money. If you can save 100 basis points or one full percentage point, say you have 7 percent mortgage and can get 6 percent mortgage, you should probably go for it. because it will probably save you a lot of money, so look into it.
ZAHN: But you also be honest, because you've gone through this yourself recently. It's a lot of work?
SERWER: It's paperwork. They're very, very busy, but it's still worth doing, because there's nothing like keeping that money instead of sending it to the bank.
ZAHN: Did they ever start taking your calls. I know you're saying the major frustration on folks part is that they have to make a number of calls to make this happen?
SERWER: They did call me back. It's funny, they called me after I talked about it on the program.
ZAHN: It's funny how that happens, isn't it, Andy. SERWER: Yes, it is.
ZAHN: Have a good weekend. Thanks.
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 October 25, 2002 - 09:24 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: If you're one of those folks who have been waiting for mortgage rates to go lower, you may have missed the boat.
Andy Serwer here to break the bad news.
Andy, good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Paula, that's right, Mortgage rates have ticked up over the past couple of weeks. While the stock market went up, mortgage rates have gone up at the same time. Yes, they have ticked up significantly enough to impact how much money you would pay per month. Let's get to that right now. Here is how much rates have gone up. They call those basis points, people in technical jargon. It's gone from 5.98 to 6.31 in the 30-year fix, ticked up across the board. What does that mean per month? Let's go to the next screen and it'll show you. It's about 14 to 16 dollars more per month on those mortgages. And, Paula, that adds up over the year.
But what I want to emphasize here is do not abandon your quest to refinance your house just because rates have ticked up a little bit here.
ZAHN: Why not?
SERWER: Because there they are still historically low and they're still at a point probably where you will save money. If you can save 100 basis points or one full percentage point, say you have 7 percent mortgage and can get 6 percent mortgage, you should probably go for it. because it will probably save you a lot of money, so look into it.
ZAHN: But you also be honest, because you've gone through this yourself recently. It's a lot of work?
SERWER: It's paperwork. They're very, very busy, but it's still worth doing, because there's nothing like keeping that money instead of sending it to the bank.
ZAHN: Did they ever start taking your calls. I know you're saying the major frustration on folks part is that they have to make a number of calls to make this happen?
SERWER: They did call me back. It's funny, they called me after I talked about it on the program.
ZAHN: It's funny how that happens, isn't it, Andy. SERWER: Yes, it is.
ZAHN: Have a good weekend. Thanks.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
