| Banks See Spike In Refinancing Applications
MADISON, Wis. -- Refinancing applications have surged 17 percent after interest rates dropped three-quarters of a point in the past week -- and they could go lower. VIDEO: Watch The Report But financial experts said it is important to know when it's best to refinance and if the type of loan a consumer has is even affected by this week's federal rate cut. Don Bertucci, AnchorBank's senior vice president of residential lending, said the last few days have been hectic. He said the phones have been ringing and the online applications have been coming in, all in response to this week's rate cut by the federal reserve. So, what does the 0.75 percent rate cut mean for residents? "It would affect mostly second mortgages or home equity lines of credit, where the rate is adjustable," Bertucci said.
The No-Equity Loan Trap
THANKS TO SOARING home prices and the fantastic mortgage rates we've seen over the past few years, millions of homeowners have tapped their home's equity to pay off bills or fund a remodeling project. And in many cases, this can be a smart thing to do. But it's one thing to draw on the value of your home and another to exceed it. Falling prey to what's known as a "no-equity home-equity loan" not only could cost you a small fortune in interest rates and fees, but it could put your home at risk. A no-equity home loan is simply a confusing name for a high loan-to-value (LTV) home-equity loan, in which the amount you're borrowing surpasses your home's total value often by as much as 25%. This creates a sort of a hybrid secured/unsecured loan. Not surprisingly, these risky loans are aimed at the truly cash-strapped.
Alliance of hog farmers plan to buy N.D. plant
The co-op is putting together a business plan and soon will begin a push to sign up more farmers in its current area and in South Dakota and Canada, said Dukart, the general manager of the group. ``We're hoping to have this done in the next 90 days,'' he said. ``It's been 10 years of continuous work. This has kind of been a producer dream.'' Financial terms of the deal are not being disclosed. Cloverdale will remain a minority partner in the plant and will continue to handle management. T.J. Russell, the company's president and CEO, said all 50 full-time workers will keep their jobs. Russell and Dukart said the new arrangement will guarantee farmers a market and provide them better returns for their hogs while creating a more reliable hog supply and reducing procurement costs for Cloverdale.
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