With Interest Rates Rising, Cash-out Refis Are Key to MBS Extension Risk
November 11, 2005
Whether consumers continue to cash out the built-up equity in their mortgages will go a long way in determining how much extension risk MBS investors face in today’s rising interest-rate environment, according to analysts at Bear Stearns. As interest rates rise, the likelihood of prepayment decreases...
It will be the 11th issuance of its type by loanDepot.
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