New Mortgage News....

[rjd970]

How do you guys think this will affect things:

Treasury Department Considers Plan to Lower Mortgage Rates - FOXNews.com Transition Tracker

It looks like it is something that will finally reward the responsible people who have not over-bought, paid their mortgage, and maintained good credit. If the rate does drop the way they are talking about (ie...40 year lows), I will definitely refinance next year.

[lawgator1]

I'm for it.

[utvolpj]

Originally Posted by lawgator1

I'm for it.

me too. Would help my wallet twice since my company is dependent on the housing industry.

[rwemyss]

Got locked in on a 6% rate early last week to close on my new home on Monday (12/8/2008).

[vader]

Originally Posted by rwemyss

Got locked in on a 6% rate early last week to close on my new home on Monday (12/8/2008).

And I just refinanced at 5.375 and was feeling pretty danged good until now.

[OrangeEmpire]

We got 5.65%.....

[MG1968]

hey, it was a link to a Fox News article, so you know you can't believe it.

[droski]

this sounds pretty costly. they should limit this to first time home buyers

[rjd970]

We locked in at 6.5% exactly a year ago. I have some reserve and I am punching some numbers to see what kind of rate I need for it to be worthwhile for me to refi.

Droski....costly for whom?

[volinbham]

I've been at 5.875 for the last 7 years. I need 15 year rates to hit about 4.5 to make it worth the switch.

[droski]

Originally Posted by rjd970

We locked in at 6.5% exactly a year ago. I have some reserve and I am punching some numbers to see what kind of rate I need for it to be worthwhile for me to refi.

Droski....costly for whom?

the fed. even at 4.5% will still see some defaults. and who is to say we can still sell 30 year treasuries at 3% if we implement this.

[rjd970]

Originally Posted by droski

the fed. even at 4.5% will still see some defaults. and who is to say we can still sell 30 year treasuries at 3% if we implement this.

But wouldn't this kind of program see much less defaults than others they are talking about with buying up bad loans so people can stay in houses they can't afford? Even if the Fed does lose money, isn't doing something like this to correct the problem better than implementing programs to bail-out people who got in over their heads with the subprimes?

I like the idea, because if the Fed is going to lose money it should be done in a way like this where people who were responsible and followed the rules will feel less hurt by circumstances for which they had no control over.

At the very least, if they banks get their bail-out loans for for risky and irresponsible lending, then it's the least they can do for the responsible lendees that stayed away from the subprime crap, yet are still feeling the sting of lower housing prices.

[droski]

you are right. it might be the lessor of evils. we certainly don't want to bail out those who bought houses they can't afford.

[SmokeyVol]

I'm defiantly all for it!! I design home for a living!!

[GAVol]

10 years ago, would anybody have ever believed that we would be slightly complaining about our mortgage rates being 5.5-6% rather than 4.5-5%? I remember buying my first house in 1997 and locking in at 7.875% because it was deemed a steal to get a rate below 8%.