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The www.FedPrimeRate.com Personal Finance Blog and Magazine

Thursday, October 16, 2014

Former Fed Chair Ben Bernanke Gets Rejected When He Tries to Refinance His Mortgage

Former Fed Boss Ben Bernanke
Former Fed Boss Ben Bernanke
Former Fed Boss Ben Bernanke recently told a crowd that his application to refinance his mortgage was declined.

I bet that one got lots of chuckles, but I think I understand why he did this.

You see, Uncle Ben already refinanced twice before, in 2009 and 2011.

Rates are still extremely favorable right now, but if he jumped into refi #3 today, it would only shave a few basis points (a fraction of a percentage point) off his rate.

Now, considering the closing costs, how possibly  could it be a worthwhile thing to do?


So my theory?  Uncle Ben is trying to send a very clear message to America's banks: Loosen up those lending standards!

If Dr. Benanke, a guy who makes $250,000 per speech, and has a $1M book deal, can't refi, then what hope is there for the rest of us with great income, great credit and who are perfectly deserving of a favorable loan?


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