Good news about Mortgages
Sunday’s federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates could drop by 1 percent from the absurd high 6.39% for a 30-year fixed rate mortgage.
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“This is very good news for would-be homeowners” said Tom LaMalfa, managing director, Wholesale Access, a research and consulting firm. “It would reduce the cost of financing at the new and improved Fannie and Freddie.”
The government wants to make mortgages easier to obtain and afford. By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system.
“Fannie Mae and Freddie Mac are crucial to turning the corner on housing,” said Treasury Henry Paulson. “Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us.”
Tight standards and fees will remain
With defaults and delinquencies multiplying and home prices falling, Fannie and Freddie will likely keep tight standards. Lenders are demanding credit scores above 700 these days, up to 620 in the past.
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This is your opportunity
If you want to own your own home, this is your chance. House prices are falling and mortgage rates are going down. The only thing you need is good credit. You need to have a credit score of 700 or higher. Therefore make sure you have good credit, if you have bad credit; order your credit reports and start repairing your credit. If you don’t have the knowledge or time to do this yourself, hire a professional to do this for you. There are many Credit Repair Companies; one of them is offering a high quality program with a very low price structure. Interested go the FR Credit Repair.
If you like this post, you might also like “How to turn the Credit Crunch into something positive”
Scraped from money.cnn
