2 » - MANCHESTER HERALD, Mon., Jan, 24, 1983 BUSINESS Should you refinance your mortgage? your home? If you expect to live there another 10 years Record numbers of new homeowners are ''Prcpaymedfl penalties can total significant sums. A 2 or more, the expenses will be worth it fot many of you. applying to refinance their mortgage loans — assumed percent prepayment charged to a $100,0(X> mortgage But if your plans involve selling and moving on Within only months ago when interest rates were at almost un­ takes $2,000 out of your bank account immediately. Y o u r a few years, these new costs may not offset the reduc­ believable peaks. With the sharp plunge in interest rates 2) Calculate the costs of refinancing at the same .in­ tion in monthly payments. Another point; The longer since, a new mortgage on a home can translate into M o n e y 's stitution. Usually, you can get a better refinancing deal you plan to stay in your home, the smaller the reduction savings of thousands of dollars over a mortgage with the current lender. But shop around! Will there be in your mortgage rate you need to consider in refinan­ .Manchester, Conn. lifetime. Should you join the developing rush? What are W o r t h a second credit check on you, as well as another title Clear tonight; search? If you have an FHA mortgage, for instance, cing. the pitfalls to know and avoid? Sylvia Porter Finally, what about taxes? The tax credit you get on sunny Wednesday Tuesday, Jan. 25, 1983 There's no disputing the trend. The Federal Housing that’s less than 1 year old and is for new construction, mortgage payments may outweigh any savings in Administration (FHA) estimates that between 30 per­ the FHA won’t require a new appraisal. Single copy 25(t 3) Ask with utmost care what closing fees and other monthly payments on a new mortgage, suggests Karin — See page 2 iJlanrl|patpr Hrralh cent and 40 percent of new applications recently have Hill, staff vice president at the California S&L League. been from homeowners who want to refinance. Since one won’t be cost-free, nor will it be easy. But you can charges to anticipate. In general, closing costs are How big should be the percentage drop in interest September, the FHA has been receiving record numbers lower the second time around. The institution knows do it, if you decide the hassles are worth it. rates before you refinance? Some experts say two to It's difficult to generalize across a collection of state your payment record — and the process should be of applications. three points, others suggest four. All conclude, though, Say you bought your home with an FHA mortgage laws and institutional policies, cautions James W. Chris­ quicker and less costly to you. in today’s climate, refinancing your mortgage can make when rates peaked at 17t4 percent in September IMl. tian, chief economist for the U.S. League of Savings 4) Once you’ve collected all your figures, visit one or real sense. Figure it out for yourself. I V. • J ^ New FHA mortgages are at 12 percent. That means Institutions, but the following guidelines apply. two other institutions where, of course, you will be a ("Sylvia Porter’s 1983 Income Tax Book,” her com­ huge amounts of dollars over 30 years. / 1) Go in person to the institution that holds your new applicant. Compare the commitments of each in­ prehensive guide to income taxes, is now available State of the Union . Monthl.^ payments on a $100,000 conventional mortgage and investigate all costs. Are there prepay­ stitution and closing fees on a new mortgage. Compare through her column. Send $3.95 plus $1 for mailing and mortgage at 18 percent over 30 years total close to $1, ment penalties and, if so, what are they and how much all costs with your current payments. handling to "Sylvia Porter’s 1983 Income.Tax Book.” in 508. The same loan, at 16 percent, costs almost $1,345. will they add? Some state laws prohibit prepayment- What does the new mortgage look like now? care of the Manchester Herald, 4400 Johnson Drive, Refinanced today at 12% percent, monthly payments penalties, others ban them after the mortgage is a 5) Amortize whatever prepayment penalties and Fairway, Kan. 66205. Make checks payable to Universal would plummet to about $1,087. specified number of years old; still others have closing costs come to (plus all other fees) over a period Press Syndicate.) Getting a new mortgage to replace your high-interest different rules. of time. A key factor: How long do you plan to stay in Reagan will ask — In brief Thomass 1 Morton promoted Making support on deficit Extra HARTFORD - Robert D. Morton of 349 Timrod it safe hand Road, has been promoted to senior Ramadas KInl, an Steve Hill reaches vice president of tells where Industrial packag­ WASHINGTON (U P l) — Cutting propose a budget with a deficit in whereby a potential employer can through the opening First Connecticut ing engineer of the federal deficit below $100 the range of $185 billion to $188 get a tax break if he hires a worker to adjust the hands Bancorp. He is billion by 1988 is the key topic in billion, double last year’s red ink. whose unemployment benefits on one ot the four Plough Inc. In Mem­ have run out. responsible for the President Reagan’s State of the The aide said the president will faces ot the clock phis, Tenn., checks Union address tonight, in which he Bank Investment include a request for the controver­ He also will renew his request for blister pack strips to hopes to set a “ positive tone,” a atop the Windham Division and other to find it sial "standby tax” after 1985, but urban enterprise zones to spur Center First Con­ moke certain St. Jo­ White House aide said. related activities. has not decided the level of the inner-city investment and a Reagan was putting his “ final gregational Church Morton, who seph Aspirin Free deficit that would trigger the tax. scaled-back New Federalism pro­ joined FCB in 1971, Tablets for adults imprint" on the speech he hopes in Windham. Hill By LeRoy Pope Such a tax, opposed by Senate gram to turn over some federal was promoted to vice meets tamper- will reassure restive Americans volunteered three UPl Business Writer Republican Leader Howard Baker responsibilities to the states. president in 1976. He “ we’re moving ahead and making months of his time resistant packaging and other GOP lieutenants, would h old s an un­ NEW YORK — Most of us get a bit indignant when we progress on the difficult road to He will cite Social Security to restore the land­ standards. The sys­ (economic) recovery,” the aide include an oil itnport tax and an dergraduate degree see some firm advertising "send $2 for our handsomely reforms, $45 trillion in spending tem uses 40 Individ­ said, adding "the signs are there." income-tax surcharge. ^ mark to operating from the University illustrated catalog." We think catalogs should be free. cuts and steps to defer cost of living ual tablets In blister The president planned to outline condition. of Connecticut and a But one outfit now sells its catalog for the stiff price of The State of the Union speech increases in pensions and other his proposals to Republican con­ master’s degree in packs, delivered In a will contain only part of Reagan’s benefits as ways to cut down the . UP) photo $160 and it's so Much in demand that General Electric gressional leaders at a morning economics from carton with glued agenda for the 98th Congress. The deficit. has 870 sets in use, DuPont 507 and General Motors meeting. He was to deliver the Trinity College. He several hundred. flaps that have remainder will be in the fiscal 1984 On the forieign policy front, nationally broadcast address to a budget he submits Monday. is also a member of The catalog is the Thomas Register of American tamper-resistant Joint session of Congress at 9 p.m. Reagan will demand a "fair Robert D. Morton the adjunct faculty Manufacturers, which has been published since 1905 and Indicators. EST today. Although most of Reagan’s prop­ shake" for America in interna­ of the University of looks more like an encyclopedia than a conventional The official, who asked not to be osals already have been revealed, tional trade. He also will reaffirm Hartford. catalog. Its 17 volumes embrace 30,000 pages. UPl photo . identified, said there were to be the aide said they will include a his policies to bring peace to the Morton is a director of the Center for Economic "You can find anything in it from an abacus to zir­ "no surprises” in the speech which renewed proposal for tuition tax Middle East and a nuclear arms Education, Hartford Rotary and Sunshine Project conium powder," says Carl T. HolstKnudsen, Thgnjas’s will set a "positive tone” . credits, school prayer and anti­ reduction accord between the Inc. He is also a member of the Hartford Society of 41-year old president. "There will be a strong appeal abortion amendments. superpowers. Financial Analysts and other civic and professional About 150,000 sets are in active use as buyers' babies for bipartisan support to attack In addition, he will seek a A new appeal will b#made for organizations. by corporations,, government agencies and iWhries in crucial national problems similar reduced minimum wage for unem­ passage of the $350 million Carib­ First Connecticut Bancorp is the parent holding the United States and foreign countries.