Discussion / Answer 2 questions and comment on 2 students / 200~300 words for answers / need in 24 hours / required outside sources

Question 1: What are the primary considerations that should be made when refinancing? Please elaborate by expressing your thoughts about your findings in at least 3 – 4 sentences.

Student 1:

The term refinance, or "refi" for short, refers to the process of revising and replacing the terms of an existing credit agreement, usually as it relates to a loan or mortgage. When a business or an individual decides to refinance a credit obligation, they effectively seek to make favorable changes to their interest rate, payment schedule, and/or other terms outlined in their contract. If approved, the borrower gets a new contract that takes the place of the original agreement.

The primary considerations that should be made before refinancing are-

• Before you decide whether or not to refinance your mortgage, make sure that you have adequate home equity—at least 20% will make it easier to qualify for a loan.


• Check to make sure your credit score is at least 760 and your debt-to-income ratio is 36% or less.


• Look into terms, interest rates, and refinancing costs—including points and whether you’ll have to pay private mortgage insurance—to determine whether moving forward on a loan will serve your needs.


• Be sure to calculate the break-even point and how refinancing will affect your taxes.

Question 2: EXPLORING THE WEB - FDIC

Please visit the Federal Deposit Insurance Corporation at ttps://www.fdic.gov. What is the purpose of the organization? Explore the site and bring back something that interest you and share it with the class.  Be sure to check out the real estate that FDIC has for sale from failed banks under “Institutions & Assets Sales.”

Student 2:

FDIC is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. FDIC was created in 1933. FDIC has the following functions for bankers and people who save money in the banks. FDIC insures deposits so you do not lose your money if your bank fails. If you open a bank account with an FDIC insured bank, your money is automatically protected. The FDIC 8insures deposit accounts for up to 250,000 per depositor, per institution, per ownership category.

The FDIC website provides resources for the consumers as well as bankers. It also provides related laws and regulations, publication, forms and data tools. It provides research data of various kinds concerning banking industry.

Under the Institutions and Asset Sales, there are information about failing bank acquisitions, financial asset sales, loan sales and real estate sales. The real estate are groped into commercial, land, multi-family houses, single family houses and bank premises. The properties are divided by state and you can search for any properties you are interested in. The listings of properties are very limited in number.