|Editions | myCNN | Video | Audio | Headline News Brief | Feedback||
High Mortgage Rates Discouraging Homeowners From RefinancingAired July 3, 2000 - 2:54 p.m. ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU WATERS, CNN ANCHOR: Another question for you: How are you on your American history on this 4th of July holiday? If you need to brush up a bit, you're not alone.
NATALIE ALLEN, CNN ANCHOR: Some American college students took a pop quiz on basic facts and terms, and national correspondent Bruce Morton shows you how they did.
DAN RONAN, CNN CORRESPONDENT (voice-over): Mark and Michelle Lopez (ph) of suburban Atlanta say it was a tough decision, but they've decided to stay in the home they've owned for 12 years.
MARK LOPEZ, HOMEOWNER: Why give up what you have just to go into another probably mortgage situation at a higher interest rate for a like house.
RONAN: Instead the couple got in on the refinancing boom before rates jumped earlier this year. Now with a lower payment, they're paying more principal every month than interest. They've also some of the extra money to add a sun room and redecorate. They also built a swimming pool, doing much of the labor themselves.
(on camera): Just down the street from Mark and Michelle Lopez, dentist David Murphy, his wife and three children used to live here, but they've moved and are now building a new home about a mile away.
They've been friends with the Lopezes for years: 18 months ago, when 30-year fixed mortgage rates hit bottom at less than 7 percent, Murphy began working on the house. Now, it's 80 percent complete.
DAVID MURPHY, HOMEOWNER: The construction law requires 60 days before completion before you can lock in to a certain rate. So again, that's the gamble there: Do you wait, do you not wait? You watch the interest rates, hope you get a good one, and then lock in.
RONAN: And many economists see little upward pressure on mortgage rates. Murphy's new home will require a jumbo loan, more than $350,000. But with the sale of his old house and plenty of equity, he says he'll be OK.
MURPHY: If the interest rates don't drop, we try to accelerate the payments and pay it off quicker to save your interest monies that way.
RONAN: Dan Ronan, CNN Financial New, Jonesboro, Georgia.
ALLEN: I'll let you explain that.
WATERS: Just our way of keeping you on your toes. We tell we're going to present a story by Bruce Morton and we don't. We're sorry.
ALLEN: We presented another story. We hope you got something out of it. That was Dan Ronan reporting.
WATERS: It was just one of those media mixups, and that's CNN TODAY, fortunately..
ALLEN: Pre-holiday media mixup. But thanks so much for watching.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
|Back to the top||
© 2001 Cable News Network. All Rights Reserved.|
Terms under which this service is provided to you.
Read our privacy guidelines.