Homeowners and prospective homeowners of Eustis, Mount Dora, and Tavares, Florida could see, as early as next week, rates on 30 Year Fixed Rate mortgages in the 4% range. This move could come about as a result of a push by Republican lawmakers to include this provision in President Obama’s $900 Billion stimulus package.
Lowering Mortgage Rates
The strategy has two main objectives to help stimulate the economy. The first being to stop the falling housing market. By dropping rates below already historic low rates, prospective homeowners may jump on them to buy matching historic low housing prices. The second would stimulate consumer spending. Existing homeowners will be able to refinance (provided they are not already upside-down), thus lowering their monthly obligations.
The provision is aimed towards Fannie Mae and Freddie Mac, not FHA. Hope for Homeowners will not be an option for homeowners that are owing more than the current appraised value since it is an FHA program. The plan will allocate $300 Billion to the mortgage giants, so timing is critical to home buyers and homeowners looking to jump in on the action.
Democrats, who are currently showing favoritism to the provision, are expecting to vote on the package as early as this Friday. With that being said, my advice is that if you are thinking of buying or refinancing, now is the time to do it. As soon as the rates drop, lock your loan. Do not wait till tomorrow to see if it drops another .125% because it could go up .25%.
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[...] I forgot to add the cherry!!! Mortgage rates could see an all time low as early as next week depending on how the $900 Billion stimulus package [...]