October 29th, 2014
If you pay attention to financial news, you may have been shocked recently to discover that the former head of the Federal Reserve, Ben Bernanke, can’t refinance his mortgage.
A Shocking Revelation
Like most people, this probably doesn’t seem to make a lot of sense to you. Seeing as how he once headed the most important financial institution in the world, one would think he’d probably have some friends in high places who could help him out.
On top of that, it’s not like Mr. Bernanke is hurting for financial collateral. He gets somewhere in the neighborhood of $250,000 for delivering speeches that last no more than 40 minutes. Earlier this year, he got a book deal that is said to be worth seven figures. Even though he’s no longer in charge of the Federal Reserve, his new career has him leading a think tank, which one would assume pays pretty well.
So is it really possible that the man who used to set the interest rate policy for the United States can’t get refinanced? According to a speech he gave on October 2nd in Chicago, Bernanke said as much, despite the fact that he had refinanced twice in the past.
Assuming all of the above is accurate about Bernanke’s finances, what could be accounting for this refusal to refinance his home? We know that it cost $839,000, but is now worth $815,000. Still, with his lucrative career, refinancing shouldn’t be a problem.
For his part, Bernanke seemed to think that mortgage conditions have become too tight. Whether that’s the case or not, it’s hard not to feel a bit disheartened if you had hopes to refinance your home in the near future. What chance do you stand, after all, if a financial wizard like Bernanke, a millionaire no less, can’t do the same?
Refinancing Is Still Happening
Bernanke’s situation aside, we know that refinancing is still occurring. After all, it represents very real opportunities for financial institutions. That’s why they offer them in the first place. While Bernanke’s lender may indeed have incredibly tight restrictions where mortgages are concerned, that hardly means everyone else does too.
At Ace Mortgage Company, for example, we have 15 different investors you can choose from. No matter what your financial situation, at least one of them is bound to talk to you about the possibility of refinancing your mortgage.
Remember, too, that Bernanke is the former head of the Federal Reserve. It might sound silly, but banks are often hesitant to extend privileges like refinancing to someone who has just had a major career change.
Yet, we have investors who offer far fewer restrictions where refinancing is concerned. Despite what you may have heard or thought after reading the above, you don’t need a 700 credit score to be considered for refinancing. You don’t need to put something ridiculous down like 20% in order to make it happen.
It’s also important to keep in mind that the media thrives on doom and gloom. Again, refinancing is clearly still happening or we wouldn’t still be working with 15 different investors. However, that story probably won’t make you read websites or tune into the news—not like a story about Ben Bernanke unable to refinance his home.
Worth Looking Into
If nothing else, it’s worth looking into whether or not refinancing is an option for you. It’s not like the process costs anything and then you’ll know for sure if you have an icebreaker should you ever run into Bernanke.
Whether you want to refinance your home or simply get the initial mortgage, make Ace Mortgage (http://www.acemortgagela.com) the name you trust to ensure you get the best possible deal, no matter what your financial status.