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Mortgage rates at record low, Silicon Valley refinancing applications surge
By Sue McAllister
Mercury News
Posted: 03/26/2009 06:17:27 PM PDT
Mortgage rates dropped to a record low this week, stoking a surge in refinance applications in the South Bay as homeowners look to take advantage of some of the best loan deals in nearly 40 years.
The national average interest rate for 30-year home loans fell to just 4.85 percent this week from 4.98 percent last week, Freddie Mac said Thursday. That's the lowest ever recorded by the government-backed mortgage financing company, whose data goes back to 1971. The previous record low was set in mid-January, when rates fell to 4.96 percent. Average rates are those for "conforming" loans, up to $417,000.
Experts say rates are likely to stay low for the rest of the year, perhaps providing a much-needed balm for the wounded housing market.
Even in Silicon Valley, where residents need bigger loans to buy in the area's more expensive neighborhoods, news of the low rates is spurring loan applications, local mortgage industry professionals said.
"I am busier right now than I was all of last year," said Todd Flesner, a broker with Stern Mortgage in Palo Alto, "due primarily to low interest rates and the correction in values on home purchases."
With home prices down from last year, he's got several first-time clients purchasing homes in the $500,000-and-under price range in San Jose.
Similarly, Chris Amsden, owner of Golden State Lending in Los Gatos, said he's seen a surge of loan applications in the past two weeks. Sixty-five percent
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are for refinances, he said, and the rest are for purchases. Most of those purchasing are seeking foreclosures or short sales, he said.
Interest also spiked as measured by Zillow.com. At the real estate site's Mortgage Marketplace, there were 7,868 requests for loan quotes from March 12-18, and 21,841 requests from March 19-25, just as rates dived to 5 percent and lower.
A lack of equity
But despite the good news about low rates, obstacles remain for many local homeowners who want to refinance. Loans are generally available only to those who have at least 20 percent equity in their homes. And with home values falling, fewer people have the equity needed to refinance. Also, while rates for conforming loans and so-called "jumbo conforming loans" ($417,000 to $729,750), are at or near record lows, rates for loans even bigger than that remain at an average of 6.66 percent this week, according to Bankrate.com.
The recent drop in rates occurred after the Federal Reserve announced plans last week to buy more than $1 trillion worth of Treasury bonds and mortgage-backed securities from Freddie Mac and its sister company Fannie Mae, in an effort to keep mortgage rates attractive and bolster the weak housing market.
Rates dropped sharply on the news last week, although they have ticked upward slightly since then. (Freddie Mac's report provides an average rate for the seven days ending Thursday.)
For borrowers willing to pay a point up front, rates for loans of up to $417,000 were about 4.75 percent Thursday, Flesner said. And for jumbo conforming, rates were about 5.125 percent with 1 point paid.
A point is equal to 1 percent of the loan's principal; some borrowers opt to pay points in exchange for lower interest rates. In the Freddie Mac survey, borrowers paid an average seven-tenths of a point on the record-low average 4.85 percent interest rate.
The Fed's announcement nearly assures that rates will stay low, said Greg McBride, senior financial analyst with Bankrate.com.
"By purchasing mortgage debt and Treasuries over the remainder of the year, the Fed is going to keep a lid on mortgage rates for the remainder of the year. Low mortgage rates for as far as the eye can see is what's needed to bring buyers back to the market," he said.
Refinance, refinance
The mortgage market is being dominated by refinance transactions, according to the Mortgage Bankers Association. In its most recent weekly survey, for the week ended March 20, nearly four out of five mortgage applications nationwide were for refinance transactions. Refinance applications increased 42 percent compared with the previous week, the trade group said.
Arlene Allert, Bay Area regional manager for Wells Fargo Home Loans, urges homeowners to consider their long-term financial goals and research various loan products available before deciding to refinance.
"A lot of people over the last few years got into a culture of 'the rates are down, I'm going to refinance,' " she said. "A lot of people ended up in products that maybe weren't the best for them."
Allert added that the Obama administration's new refinancing and loan modification programs, dubbed Making Home Affordable, should help some "underwater" homeowners — those who owe more than their homes are worth — when the programs are up and running. She wasn't sure when Wells Fargo will begin helping customers navigate the options available through Making Home Affordable, but said the bank was "working diligently" on a process that will help customers quickly gauge whether they qualify for refinancing or loan modification.
Friday, March 27, 2009
Thursday, March 26, 2009
Refinancing Your House Can Save Oodles of Money
Refinancing Your House Can Save Oodles of Money
(Rochester, N.Y.) Howard Haims is a financial planner. After advising many clients to refinance their mortgages, he took the plunge himself. "We were very fortunate to lock in at a rate under 5 percent. The day it dropped, she locked us in,” he said.
Haims originally bought his home two and a half years ago, but he locked in the new rate a-point- and-a-half lower, saving $350 a month.
"There's plenty of money around Rochester. The rates are low; it’s a great time to refinance," said Chris Stevens of Premium Mortgage.
You could easily consider a refinancing if you answer “Yes” to one of more of these four questions.
1- Is my interest rate over 6 percent?
2- Do I plan to stay in my home for more than a few years?
3- Is it time to trade my adjustable rate to lock in a low fixed rate?
4- Do I want to cash out the equity in my home to consolidate other debt?
The combination of lower interest rates and bailout money to banks appears to be working to stimulate the economy.
In just one week, refinancing applications surged 42 percent. What’s different this time is that now banks are doing more to scrutinize potential customers.
Haims said, "This time we need to see tax returns, investment statements…do a full credit check. The pendulum has really swung…in just two years."
Those who want that 5 percent rate should check their credit score. Two years ago, a credit score of 620 made the cut. Now anyone below 740 will likely pay a new fee--$750 for every 100,000 borrowed.
Some people may have better luck with a smaller, regional bank.
"Our people know the local market,” said Christopher Spaker of Canandaigua National Bank. “If something doesn't quite fit, we can make an exception based on certain scenarios and a common sense approach."
Larger national banks have created standards based on what's happening across the country, in markets where housing values haven't been as stable as they are in Rochester.
http://www.13wham.com/news/local/story/Refinancing-Your-House-Can-Save-Oodles-of-Money/STIG0U23Lk24i4KJcRlVXw.cspx
(Rochester, N.Y.) Howard Haims is a financial planner. After advising many clients to refinance their mortgages, he took the plunge himself. "We were very fortunate to lock in at a rate under 5 percent. The day it dropped, she locked us in,” he said.
Haims originally bought his home two and a half years ago, but he locked in the new rate a-point- and-a-half lower, saving $350 a month.
"There's plenty of money around Rochester. The rates are low; it’s a great time to refinance," said Chris Stevens of Premium Mortgage.
You could easily consider a refinancing if you answer “Yes” to one of more of these four questions.
1- Is my interest rate over 6 percent?
2- Do I plan to stay in my home for more than a few years?
3- Is it time to trade my adjustable rate to lock in a low fixed rate?
4- Do I want to cash out the equity in my home to consolidate other debt?
The combination of lower interest rates and bailout money to banks appears to be working to stimulate the economy.
In just one week, refinancing applications surged 42 percent. What’s different this time is that now banks are doing more to scrutinize potential customers.
Haims said, "This time we need to see tax returns, investment statements…do a full credit check. The pendulum has really swung…in just two years."
Those who want that 5 percent rate should check their credit score. Two years ago, a credit score of 620 made the cut. Now anyone below 740 will likely pay a new fee--$750 for every 100,000 borrowed.
Some people may have better luck with a smaller, regional bank.
"Our people know the local market,” said Christopher Spaker of Canandaigua National Bank. “If something doesn't quite fit, we can make an exception based on certain scenarios and a common sense approach."
Larger national banks have created standards based on what's happening across the country, in markets where housing values haven't been as stable as they are in Rochester.
http://www.13wham.com/news/local/story/Refinancing-Your-House-Can-Save-Oodles-of-Money/STIG0U23Lk24i4KJcRlVXw.cspx
Refinancing Boom Isn't for Everyone
Refinancing
People are pinching their pennies in this recession, but now may be the time to look for a house or refinance the one you own. The Utah average on a 30-year fixed rate mortgage is back up to 5.4% according to Bankrate.com. That's a low rate but the business has changed.
Home ownership is looking like a good deal again. There are a lot of houses for sale, prices have gone down and interest rates are low.
"They had some pieces and I told them I just wanted bigger dimensions," said Jennifer Burt as she showed us around her Riverton house. She locked in a rate of 4.6% not long ago with the same loan company she was already paying. It seemed like a simple refinance, but as time was running out on the rate, there were complications.
"Once we got through underwriting, they changed their mind and said, 'Oh by the way, we want a full blown appraisal.' So, we had to pay a second appraisal fee, so we were charged for two appraisal fees," she said.
Delays, stricter requirements, and last minute employment verification seem to be the norm in the financing business these days. Lance Miller finds loans for people and trains loan officers. He says the free-wheeling days of a few years ago are over.
"The problem is credit scores affect your rate a lot more than they used to, so if you have a score below 740 on a conventional loan, your rate goes up," according to Miller. He says fewer than half of all Americans meet that mark and there are no more programs for people with bad credit. And very few loans for the self-employed whose income isn't consistent.
"Lenders are extremely scared of writing a loan they have to take back," said Miller.
Jennifer Burt thinks it's unfortunate people with good credit are paying for other's mistakes.
"You understand why. Obviously, if they had been cautious in the first place, none of this would have happened," Burt said.
People are running into problems with their credit scores or they don't have enough equity in their home anymore. Experts say to also pay attention to run-away fees. Some lenders are trying to pad their bottom line, by taking more money from the consumer up front.
People are pinching their pennies in this recession, but now may be the time to look for a house or refinance the one you own. The Utah average on a 30-year fixed rate mortgage is back up to 5.4% according to Bankrate.com. That's a low rate but the business has changed.
Home ownership is looking like a good deal again. There are a lot of houses for sale, prices have gone down and interest rates are low.
"They had some pieces and I told them I just wanted bigger dimensions," said Jennifer Burt as she showed us around her Riverton house. She locked in a rate of 4.6% not long ago with the same loan company she was already paying. It seemed like a simple refinance, but as time was running out on the rate, there were complications.
"Once we got through underwriting, they changed their mind and said, 'Oh by the way, we want a full blown appraisal.' So, we had to pay a second appraisal fee, so we were charged for two appraisal fees," she said.
Delays, stricter requirements, and last minute employment verification seem to be the norm in the financing business these days. Lance Miller finds loans for people and trains loan officers. He says the free-wheeling days of a few years ago are over.
"The problem is credit scores affect your rate a lot more than they used to, so if you have a score below 740 on a conventional loan, your rate goes up," according to Miller. He says fewer than half of all Americans meet that mark and there are no more programs for people with bad credit. And very few loans for the self-employed whose income isn't consistent.
"Lenders are extremely scared of writing a loan they have to take back," said Miller.
Jennifer Burt thinks it's unfortunate people with good credit are paying for other's mistakes.
"You understand why. Obviously, if they had been cautious in the first place, none of this would have happened," Burt said.
People are running into problems with their credit scores or they don't have enough equity in their home anymore. Experts say to also pay attention to run-away fees. Some lenders are trying to pad their bottom line, by taking more money from the consumer up front.
Mortgage rates hit new lows
Mortgage rates hit new lows
Mortgage rates not seen since the 1950s have sparked a tsunami of applications for refinancing as well as a slight uptick in new purchase loans, according to the latest weekly survey from the Mortgage Bankers Association.
Data indicates that 78.5 percent of applications were for refinancing, up from the already elevated 72.9 percent of the preceding week.
Orawin Velz, associate vice president of economic forecasting for the MBA, said in a news release that the rate drops followed the Federal Reserve's announcement of the U.S. Treasury bond and mortgage-backed securities purchase programs.
The drop offered a “sizable refinance incentive” for most homeowners and sparked the pickup in refinance activity, Velz said.
Total activity was up 31.4 percent from the previous week and up 18 percent from the same week a year ago.
Based upon an 80 percent loan-to-value ratio, average 30-year fixed rate mortgages dipped to 4.63 percent from 4.89 percent in the prior week. Points decreased to 1.13 from 1.23, including the origination fee.
That rate is the lowest since the MBA began its weekly surveys in 1990 and the data covers approximately 50 percent of all retail mortgage applications made by mortgage bankers, commercial banks and thrifts.
The 15-year, fixed-rate mortgage dropped as well to 4.48 percent from 4.89 percent in the prior week. Points were down to 1.07 from 1.18, as all fixed rate plans continued to decline.
The out-of-favor, one-year adjustable-rate mortgage rate increased to 6.22 percent from 6.20 percent in the previous week. ARM applications made up only 1.4 percent of the applications, down from 2 percent in the prior week.
The four-week moving average of activity – a longer-range view of what’s happening in the mortgage market – was up 13.9 percent overall, with new purchase activity up 1.7 percent and refinancing up 18.7 percent.
http://www.bizjournals.com/albuquerque/stories/2009/03/23/daily46.html
Mortgage rates not seen since the 1950s have sparked a tsunami of applications for refinancing as well as a slight uptick in new purchase loans, according to the latest weekly survey from the Mortgage Bankers Association.
Data indicates that 78.5 percent of applications were for refinancing, up from the already elevated 72.9 percent of the preceding week.
Orawin Velz, associate vice president of economic forecasting for the MBA, said in a news release that the rate drops followed the Federal Reserve's announcement of the U.S. Treasury bond and mortgage-backed securities purchase programs.
The drop offered a “sizable refinance incentive” for most homeowners and sparked the pickup in refinance activity, Velz said.
Total activity was up 31.4 percent from the previous week and up 18 percent from the same week a year ago.
Based upon an 80 percent loan-to-value ratio, average 30-year fixed rate mortgages dipped to 4.63 percent from 4.89 percent in the prior week. Points decreased to 1.13 from 1.23, including the origination fee.
That rate is the lowest since the MBA began its weekly surveys in 1990 and the data covers approximately 50 percent of all retail mortgage applications made by mortgage bankers, commercial banks and thrifts.
The 15-year, fixed-rate mortgage dropped as well to 4.48 percent from 4.89 percent in the prior week. Points were down to 1.07 from 1.18, as all fixed rate plans continued to decline.
The out-of-favor, one-year adjustable-rate mortgage rate increased to 6.22 percent from 6.20 percent in the previous week. ARM applications made up only 1.4 percent of the applications, down from 2 percent in the prior week.
The four-week moving average of activity – a longer-range view of what’s happening in the mortgage market – was up 13.9 percent overall, with new purchase activity up 1.7 percent and refinancing up 18.7 percent.
http://www.bizjournals.com/albuquerque/stories/2009/03/23/daily46.html
Re-examining refinancing
Re-examining refinancing
With rates edging ever lower, homeowners can save a pretty penny -- but be aware of possible ripoffs
March 26, 2009
BY SANDRA GUY sguy@suntimes.com
As mortgage rates fall to new lows, beware of come-ons to refinance your mortgage.
The average interest rate on a 30-year fixed-rate mortgage was 4.98 percent last week, according to Freddie Mac, the giant mortgage company. The rate is expected to continue slipping in the wake of the federal government's efforts to pump money to lenders to lower mortgage rates and loosen up credit.
For borrowers with stable jobs and good credit, it represents an opportunity to refinance at the lowest rates in decades. But people with less-than-perfect credit are likely to pay higher rates. It also presents an opportunity for crooks.
The Better Business Bureau and community housing assistance leaders offer this advice:
• • Check the reliability and credibility of the company offering the refinancing at the Better Business Bureau's Web site, www.bbb.org.
• • Consult with a U.S. Housing and Urban Development (HUD) certified housing counseling agency, of which there are 30 in the Chicago area, including Lakeside Community Development Corp., 1652 W. Wallen Ave., Chicago.
• • Don't sign anything without consulting either a housing counselor or a lawyer, especially if the company is trying to push or rush you into a decision.
• • Assess whether the savings justifies the amount you will pay in closing costs and restarting the mortgage payment through refinancing.
• • A federal stimulus payment of up to $8,000 for first-time homebuyers is a tax credit that you receive with your income taxes, and has nothing to do with a mortgage closing.
• • Never sign documents in which spaces and lines are left blank.
• • Ask questions about confusing terms. especially if you choose a mortgage that doesn't have a fixed rate: When are the "reset" points? Will you be able to make the new monthly payment with a higher interest rate if it resets? Would you face a prepayment penalty or other restrictions if you qualify to refinance?
• • When a mortgage lender asks about income, expenses and other detailed questions, have at hand your bills, statements and other details that will give an accurate picture of your financial situation, rather than exaggerating or making promises you cannot keep.
• • Beware sizable upfront fees or fees that no one can explain. Reputable brokers and lenders do not charge high upfront fees.
Related Blog Posts
Will my Mortgage now Qualify for Refinancing under Obama Housing Plan
From Saving to Invest
Low Rates Don’t Matter If You Can’t Get A Mortgage
From Boom2Bust.com
With rates edging ever lower, homeowners can save a pretty penny -- but be aware of possible ripoffs
March 26, 2009
BY SANDRA GUY sguy@suntimes.com
As mortgage rates fall to new lows, beware of come-ons to refinance your mortgage.
The average interest rate on a 30-year fixed-rate mortgage was 4.98 percent last week, according to Freddie Mac, the giant mortgage company. The rate is expected to continue slipping in the wake of the federal government's efforts to pump money to lenders to lower mortgage rates and loosen up credit.
For borrowers with stable jobs and good credit, it represents an opportunity to refinance at the lowest rates in decades. But people with less-than-perfect credit are likely to pay higher rates. It also presents an opportunity for crooks.
The Better Business Bureau and community housing assistance leaders offer this advice:
• • Check the reliability and credibility of the company offering the refinancing at the Better Business Bureau's Web site, www.bbb.org.
• • Consult with a U.S. Housing and Urban Development (HUD) certified housing counseling agency, of which there are 30 in the Chicago area, including Lakeside Community Development Corp., 1652 W. Wallen Ave., Chicago.
• • Don't sign anything without consulting either a housing counselor or a lawyer, especially if the company is trying to push or rush you into a decision.
• • Assess whether the savings justifies the amount you will pay in closing costs and restarting the mortgage payment through refinancing.
• • A federal stimulus payment of up to $8,000 for first-time homebuyers is a tax credit that you receive with your income taxes, and has nothing to do with a mortgage closing.
• • Never sign documents in which spaces and lines are left blank.
• • Ask questions about confusing terms. especially if you choose a mortgage that doesn't have a fixed rate: When are the "reset" points? Will you be able to make the new monthly payment with a higher interest rate if it resets? Would you face a prepayment penalty or other restrictions if you qualify to refinance?
• • When a mortgage lender asks about income, expenses and other detailed questions, have at hand your bills, statements and other details that will give an accurate picture of your financial situation, rather than exaggerating or making promises you cannot keep.
• • Beware sizable upfront fees or fees that no one can explain. Reputable brokers and lenders do not charge high upfront fees.
Related Blog Posts
Will my Mortgage now Qualify for Refinancing under Obama Housing Plan
From Saving to Invest
Low Rates Don’t Matter If You Can’t Get A Mortgage
From Boom2Bust.com
Mexico's Cemex Shares Gain On Debt Refinancing Optimism
Mexico's Cemex Shares Gain On Debt Refinancing Optimism
MEXICO CITY (Dow Jones)--Shares of Mexican cement company Cemex SAB (CX) rose Wednesday on investor optimism the company will be successful in its debt refinancing talks with banks.
Cemex CPO shares trading on the Mexican stock market were up 3.8% to 9.02 pesos ($0.63) around 1:20 p.m. EDT.
Carlos Hermosillo, an equities analyst at the Vector brokerage, said speculation about the company's ongoing debt talks, and optimism that the U.S. financial sector could be over the worst of the crisis, were helping the share price.
Cemex's shares have been among the most volatile on the local market this year as the company grapples with its heavy debt load and falling demand in its main markets.
Earlier this month, Cemex canceled a planned $500 million bond issue because of high yield demands by investors, and instead began talks with banks to refinance $14.5 billion in debt.
The shares fell sharply when Cemex balked at the bond deal, recovered, and fell again after the company canceled its usual mid-quarter earnings guidance, citing the debt refinancing talks.
Optimism that the refinancing will progress was fueled last week when Bank of Mexico Gov. Guillermo Ortiz said the central bank is planning to use a $30 billion currency swap line with the U.S. Federal Reserve to help the private sector refinance debt.
"Cemex's complicated foreign-currency denominated debt refinancing activities could end shortly, as soon as Banco de Mexico activates the $30 billion swap line with the U.S. Fed to help Mexican firms with refinancing problems in U.S. dollars," UBS Pactual said in a report Wednesday.
A Cemex spokesman said the company had no comment on the matter.
http://online.wsj.com/article/BT-CO-20090325-712218.html
MEXICO CITY (Dow Jones)--Shares of Mexican cement company Cemex SAB (CX) rose Wednesday on investor optimism the company will be successful in its debt refinancing talks with banks.
Cemex CPO shares trading on the Mexican stock market were up 3.8% to 9.02 pesos ($0.63) around 1:20 p.m. EDT.
Carlos Hermosillo, an equities analyst at the Vector brokerage, said speculation about the company's ongoing debt talks, and optimism that the U.S. financial sector could be over the worst of the crisis, were helping the share price.
Cemex's shares have been among the most volatile on the local market this year as the company grapples with its heavy debt load and falling demand in its main markets.
Earlier this month, Cemex canceled a planned $500 million bond issue because of high yield demands by investors, and instead began talks with banks to refinance $14.5 billion in debt.
The shares fell sharply when Cemex balked at the bond deal, recovered, and fell again after the company canceled its usual mid-quarter earnings guidance, citing the debt refinancing talks.
Optimism that the refinancing will progress was fueled last week when Bank of Mexico Gov. Guillermo Ortiz said the central bank is planning to use a $30 billion currency swap line with the U.S. Federal Reserve to help the private sector refinance debt.
"Cemex's complicated foreign-currency denominated debt refinancing activities could end shortly, as soon as Banco de Mexico activates the $30 billion swap line with the U.S. Fed to help Mexican firms with refinancing problems in U.S. dollars," UBS Pactual said in a report Wednesday.
A Cemex spokesman said the company had no comment on the matter.
http://online.wsj.com/article/BT-CO-20090325-712218.html
Liberty Global's European Division Completes Opportunistic Refinancing
Liberty Global's European Division Completes Opportunistic Refinancing
ENGLEWOOD, Colo., Mar 26, 2009 (BUSINESS WIRE) ----Liberty Global, Inc. ("Liberty Global" or the "Company") (Nasdaq: LBTYA)(Nasdaq: LBTYB)(Nasdaq: LBTYK) today announced that EUR 503 million of the EUR 830 million redrawable Facility L due 2012 under the UPC Broadband Holding B.V. senior secured credit agreement has been refinanced with two new tranches (Facilities Q and R). Of the EUR 503 million, EUR 267 million has been rolled into Facility Q which is a redrawable term loan due July 2014(1) and has an interest rate of EURIBOR plus 2.75% per annum. The remaining EUR 236 million has been rolled into Facility R which is a term loan due December 2015(1) and has an interest rate of EURIBOR plus 3.25% per annum.
Commenting on the transaction, President and CEO Mike Fries said, "As this refinancing demonstrates, we continue to have access to the capital markets and will take advantage of opportunities to further extend our debt maturity schedule. Even though we have no material near-term amortizations, we believe that refinancing 2012 maturities with debt due in 2014 and 2015 is prudent in this environment and we do so with the support of our lenders. With this transaction, approximately 95% of UPC Holding's debt is due in or after 2013. As we look ahead, we are focused on ensuring that our balance sheet is optimized in order to capitalize on growth opportunities within our business and ultimately drive shareholder returns."
For additional information, please see the Current Report on Form 8-K to be filed by Liberty Global with the Securities and Exchange Commission with respect to this refinancing.
About Liberty Global, Inc.
Liberty Global is the leading international cable operator offering advanced video, voice and broadband internet services to connect its customers to the world of entertainment, communications and information. As of December 31, 2008, Liberty Global operated state-of-the-art networks that served approximately 17 million customers across 15 countries principally located in Europe, Japan, Chile and Australia. Liberty Global's operations also include significant programming businesses such as Chellomedia in Europe.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our ability to access capital markets and drive shareholder returns and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include the impact of market conditions generally on the availability, terms and deployment of capital, as well as other factors detailed from time to time in the Company's filings with the Securities Exchange Commission including our most recently filed Form 10-K. These forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
For more information, please visit www.lgi.com.
ENGLEWOOD, Colo., Mar 26, 2009 (BUSINESS WIRE) ----Liberty Global, Inc. ("Liberty Global" or the "Company") (Nasdaq: LBTYA)(Nasdaq: LBTYB)(Nasdaq: LBTYK) today announced that EUR 503 million of the EUR 830 million redrawable Facility L due 2012 under the UPC Broadband Holding B.V. senior secured credit agreement has been refinanced with two new tranches (Facilities Q and R). Of the EUR 503 million, EUR 267 million has been rolled into Facility Q which is a redrawable term loan due July 2014(1) and has an interest rate of EURIBOR plus 2.75% per annum. The remaining EUR 236 million has been rolled into Facility R which is a term loan due December 2015(1) and has an interest rate of EURIBOR plus 3.25% per annum.
Commenting on the transaction, President and CEO Mike Fries said, "As this refinancing demonstrates, we continue to have access to the capital markets and will take advantage of opportunities to further extend our debt maturity schedule. Even though we have no material near-term amortizations, we believe that refinancing 2012 maturities with debt due in 2014 and 2015 is prudent in this environment and we do so with the support of our lenders. With this transaction, approximately 95% of UPC Holding's debt is due in or after 2013. As we look ahead, we are focused on ensuring that our balance sheet is optimized in order to capitalize on growth opportunities within our business and ultimately drive shareholder returns."
For additional information, please see the Current Report on Form 8-K to be filed by Liberty Global with the Securities and Exchange Commission with respect to this refinancing.
About Liberty Global, Inc.
Liberty Global is the leading international cable operator offering advanced video, voice and broadband internet services to connect its customers to the world of entertainment, communications and information. As of December 31, 2008, Liberty Global operated state-of-the-art networks that served approximately 17 million customers across 15 countries principally located in Europe, Japan, Chile and Australia. Liberty Global's operations also include significant programming businesses such as Chellomedia in Europe.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our ability to access capital markets and drive shareholder returns and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include the impact of market conditions generally on the availability, terms and deployment of capital, as well as other factors detailed from time to time in the Company's filings with the Securities Exchange Commission including our most recently filed Form 10-K. These forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
For more information, please visit www.lgi.com.
VW Gains as Porsche Refinancing Boosts Expectations
VW Gains as Porsche Refinancing Boosts Expectations
March 26 (Bloomberg) -- Volkswagen AG rose 7.6 percent in German trading after part-owner Porsche SE refinanced a 10 billion-euro ($14 billion) loan, spurring speculation that the sports-car maker will increase its stake.
VW gained 18.04 euros to 255 euros after rising 11 percent yesterday when Porsche disclosed the new credit line. Porsche rose 1.07 euros, or 2.8 percent, to 39.33 euros today.
“What’s fanning prices is increased speculation that Porsche will now further buy into Volkswagen,” said Bjoern Voss, an auto-industry analyst with M.M. Warburg in Hamburg. “The higher VW’s price, the more Porsche can use its cash- settled options to generate cash.”
Porsche said yesterday it had reached agreement with 15 banks, including new lenders, to help refinance a loan coming due this month. The Stuttgart-based company owned 50.8 percent of Volkswagen as of Jan. 5 and has said it plans to lift the stake to 75 percent before the end of this year, a level that would allow it to bring VW’s cash onto its books.
Voss recommends buying Porsche shares and preferred stock of VW. He has a “sell” rating on the company’s core shares.
The credit crunch and recession meant banks took longer to agree the new loan, which will come in two tranches spanning 12 months, with 6.7 billion euros extendable for a further year, Porsche said. The maker of the 911 sports car, which has yet to finalize terms for an extra 2.5 billion euros to boost working capital, yesterday rose 0.2 percent.
http://www.bloomberg.com/apps/news?pid=20601100&sid=aSxAgX78NB_s&refer=germany
March 26 (Bloomberg) -- Volkswagen AG rose 7.6 percent in German trading after part-owner Porsche SE refinanced a 10 billion-euro ($14 billion) loan, spurring speculation that the sports-car maker will increase its stake.
VW gained 18.04 euros to 255 euros after rising 11 percent yesterday when Porsche disclosed the new credit line. Porsche rose 1.07 euros, or 2.8 percent, to 39.33 euros today.
“What’s fanning prices is increased speculation that Porsche will now further buy into Volkswagen,” said Bjoern Voss, an auto-industry analyst with M.M. Warburg in Hamburg. “The higher VW’s price, the more Porsche can use its cash- settled options to generate cash.”
Porsche said yesterday it had reached agreement with 15 banks, including new lenders, to help refinance a loan coming due this month. The Stuttgart-based company owned 50.8 percent of Volkswagen as of Jan. 5 and has said it plans to lift the stake to 75 percent before the end of this year, a level that would allow it to bring VW’s cash onto its books.
Voss recommends buying Porsche shares and preferred stock of VW. He has a “sell” rating on the company’s core shares.
The credit crunch and recession meant banks took longer to agree the new loan, which will come in two tranches spanning 12 months, with 6.7 billion euros extendable for a further year, Porsche said. The maker of the 911 sports car, which has yet to finalize terms for an extra 2.5 billion euros to boost working capital, yesterday rose 0.2 percent.
http://www.bloomberg.com/apps/news?pid=20601100&sid=aSxAgX78NB_s&refer=germany
Refinancing drives big jump in mortgage applications
Refinancing drives big jump in mortgage applications
New Mortgage Bankers Association research shows that record low mortgage rates have spurred a big jump in new mortgage applications.
The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32 percent for the week ended March 20. Refinancing accounted for almost 79 percent of the applications.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent last week, reaching a record low, the MBA said. It has been conducting the weekly survey since 1990, and rates were well below year-ago levels of 5.74 percent.
Overall mortgage applications last week were 20 percent above their year-ago level. The four-week moving average of mortgage applications, which smoothes out the volatile weekly figures, was up 14 percent.
The MBA’s seasonally adjusted index of refinancing applications surged 42 percent from the week before. The index was up 50 percent from its year-ago level.
http://www.bizjournals.com/phoenix/stories/2009/03/23/daily33.html
New Mortgage Bankers Association research shows that record low mortgage rates have spurred a big jump in new mortgage applications.
The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32 percent for the week ended March 20. Refinancing accounted for almost 79 percent of the applications.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent last week, reaching a record low, the MBA said. It has been conducting the weekly survey since 1990, and rates were well below year-ago levels of 5.74 percent.
Overall mortgage applications last week were 20 percent above their year-ago level. The four-week moving average of mortgage applications, which smoothes out the volatile weekly figures, was up 14 percent.
The MBA’s seasonally adjusted index of refinancing applications surged 42 percent from the week before. The index was up 50 percent from its year-ago level.
http://www.bizjournals.com/phoenix/stories/2009/03/23/daily33.html
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