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Have You Watched the News Lately and Been Frustrated?

November 9th, 2010 7:50 AM by Kathy Delbridge

Have You Watched the News Lately and Been Frustrated?

I purposely make it a point not watch the morning news, because typically all it does is set a negative tone for my day. Yesterday morning, for whatever reason , I actually watched about 2 minutes of the CBS News Early Show and was once again reminded WHY the media and news can frustrate me with their "not so perfectly delivered" news stories.

Case and Point:

Yesterday morning Rebecca Jarvis was being interviewed on the topic of "Over 50 Years Old - Should You Refinance?" 

I wish you could have seen me when she started spouting out her comments - I literally was about to jump out of my skin with frustration.

I know I should not let a little  'ole news story get me SO frustrated that early in the morning ( remember why I said I don't like the morning news), but I am VERY passionate about insuring the proper message is getting delivered to the public as it relates to mortgage financing, and well, Rebecca ( in my opinion), was NOT delivering the proper message.

Okay, here's  some of the comments/statements that were not exactly factual: My comments are in red italics.

  • The interest rate that I client can get will be anywhere between 4 and 6%. It's quite obvious that Rebecca does not actually see a daily rate sheet that you get from secondary marketing from a lender. Why? Because the highest rate on most rate sheets at the current time is 5 or 5.125%
  • You Need a 720 Score to refinance. Once again, an incorrect statement. We can actually close a conventional loan with scores as LOW as 620. There of course are factors to consider with that score, but that is the reality.
  • Plan on it taking at least 5 years to recoup your closing costs. I can't remember when I last closed a refinance and it took my client longer than 2.5 or 3 years to reach the break-even/recoup period. I make it my goal with consulting with a client to insure they hit the break-even point in that time period, or else the refinance simply  may not really make sense at the present time.
  • Watch our for that prepayment penalty, because you could easily have one. And on a $200,000  loan, it could costs you $6000. Whew, this statement is incorrect for SO many reasons. First of all, there basically have not been any prepayment penalties on loans for at least 3-5 years now. And when they are present, they are usually only 1% ( compared to her 3% example).
  • If you refinance and are over 50 years old, be prepared to work longer. WOW! What do I say about that comment? Probably better keep it to myself.

Well, I'm sure you get the picture why that 2 minute interview really frustrated the heck out of me. In defense of the interview, 2 minutes really is not that long and there should be a big disclaimer that read, "These statements do not apply to everyone and PLEASE consult with a mortgage professional because mortgage loans are not "one size fits all".

I can only imagine if there was a 50 or 55 year old watching this interview and they have a 5.5% interest rate currently and they plan on retiring in 10 years. Is it possible that person may not considering refinancing ALL because of that interview - I hope not!

Do you have a Passion and have seen or read a news story that frustrated you? If so, I'd love to hear about it. Just post your comments below.

And oh, MAKE IT A GREAT DAY!

Posted in:General
Posted by Kathy Delbridge on November 9th, 2010 7:50 AM

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