Didn’t we just do this?
“GMAC Financial Services, the financing affiliate of General Motors Corp., said it would again lend to people with credit scores between 621 and 700, a range that many lenders consider higher risk.” Source: Philly.com
Are we about to repeat history?
And in other news, I’m in the process of refinancing my 30 year mortgage. It has 25 years to go.
My lender is offering me a new 30-year mortgage at 4.7875%. My monthly payment will decline $200. Why would the lender do this?
My credit score is excellent, my payments are always on time, and so they are receiving more cash form me now than they will after we do the refi. For the lender’s bottom line, isn’t it smarter NOT to give me a new, better deal? And wouldn’t it better for the economy for the lender to use that money to make a mortgage for someone who wants to buy a new home?
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