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Article: Link to Prime Keeps Rates High on Equity Loans
- Article from:
- The Washington Post
- Article date:
- January 31, 1998
- Author:
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Copyright informationThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Despite sharp declines in mortgage rates that have triggered
the current refinancing boom, large numbers of American home
equity line borrowers still are making monthly loan payments tied to
a rate that hasn't budged in nearly a year: The prime bank rate that
90 percent of all home equity lines of credit use as their rate
baseline.
If you've got an equity line tied to prime, consider this: The
prime rate isn't so prime anymore, not when average homeowners can
pick up the phone and get a 30-year, fixed-rate, first mortgage at 7
percent.
Prime, by contrast, has been frozen by banks at 8.5 percent
since March 1997. Most home equity line formulas tie their
adjustable rates to prime, ...
Related newspaper, magazine, and journal articles:
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Article: GMAC MORTGAGE OFFERS A HOME EQUITY LINE FOR UP T0 100 HOME'S VALUE
PR Newswire;
April 6, 1995 ;
297 words
......Corporation recently introduced a home equity line that allows homeowners to access credit...be tied up with a first mortgage and equity line. Since there are a tremendous number...attractive rates of home equity lines, a 100 equity line is suited to their needs. GMAC Mortgage...
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