The former Chairman of the Federal Reserve, Ben Bernanke was recently denied a mortgage when he and his wife tried to refinance their home.
With mortgage rates still at historically low rates, Bernanke like many Americans, sought to take advantage of the current situation… but he was stopped dead in his tracks.
But why? Surely a man such as Bernanke has good credit and plenty of assets… after all, he recently received $250,000 for a 40 minute speaking engagement in March at a forum in Abu Dhabi.
Well, even though mortgage rates are low, not everyone is able to take advantage of them. Stricter and inflexible lending standards are likely to blame.
It’s likely that Ben Bernanke’s loan was rejected due to the fact that he can no longer show two years of stable income from the same source… even though a couple more speaking events and he could pay off his $672,000 current loan.
“Households that fail to refinance their mortgage when interest rates decline can lose out on substantial savings,” according to a recent study by the National Bureau of Economic Research.
Many people who want or need to refinance are not able, not because they can’t show they consistently make $250,000 for 40 minutes of work, but because their credit score is just too low to allow them to be approved.
If you find yourself struggling with a poor credit score and debt, or would like to find out about becoming debt free, call Debthelper at 800-920-2262, or visit @ www.debthelper.com.