Current odds the U.S. Prime Rate will continue at 4.00% after the September 20TH, 2017 FOMC monetary policy meeting: 29.5% (not likely), with remaining odds -- 70.5% (somewhat likely) -- that the U.S. Prime Rate will be at least 25 basis points (0.25 percentage point) higher.
âNet tangible benefitâ is defined as:ï·A 5 percent reduction to the P&I of the mortgage payment plus theannual MIP, or ï·Refinancing from an Adjustable Rate Mortgage (ARM) to a fixed ratemortgage. Note: Reducing the term of the mortgage, in and of itself, is not a nettangible benefit.
There are numerous ways to prove that a borrower has a net tangible benefit in a refinance. It is important to understand that the ânetâ part of the equation means that the benefits outweigh the costs; otherwise the transaction might not make sense. An example of a positive net tangible benefit would be a rate and term refinance that you think is going to benefit you because the rate is lower.