Right now, there are a number of measures in place designed to try and stimulate the housing market. And the mortgage market. (The two are hopelessly entwined.) At any rate, the economic stimulus package passed by the House last week includes a measure for a tax credit for first-time homebuyers. Senate Republicans are hoping to expand the number of homeowners and buyers affected by the economic stimulus bill.
The proposal by Senate Republicans involved requiring a 4% fixed rate mortgage. This 30 year mortgage would be available for those who are "credit worthy" (whatever that means) who want to refinance or buy. This is nice, from the standpoint that it at least rewards those who have been making good decisions. But will the Senators include a provision for those who don't qualify for refinance due to loan to value ratio?
Declining home values are punishing some who would like to refinance by reducing their ability to get approved (forget that at the height of the housing bubble people with questionable credit were getting home equity loans for 125% of their equity).
At any rate, it will be interesting to see what comes of this.
Technorati Tags: economic stimulus, home equity loans, loan to value ratio, refinance, stimulus bill, Tax creditAdd to:
Subsidizing lower mortgage rates would mostly be limited to people with sufficient home equity and incomes.
Homeowners with the greatest need may not qualify because of equity and debt ratios.
It would help if the 4% target rate also applies to FHA loans.
Posted by: Ditech Home Loans | February 5th, 2009 12:54 pm |
Subsidizing lower mortgage rates would mostly be limited to people with sufficient home equity and incomes.
Homeowners with the greatest need may not qualify because of equity and debt ratios.
It would help if the 4% target rate also applies to FHA loans.
Posted by: Ditech Home Loans | February 5th, 2009 12:55 pm |
About 6 yrs ago I had a heart attack. I was in the construction bus. so no insurance. and I ended up in bankruptsy. I have since paid the chapter 13 off and now my wife has been laid off and I have a job that pays 1/2 of what I used to pay. With the credit I have and the income I have is there any way this Gov. stimulus would help me? I own approx. 60 percent of what my home is worth in the current economy. Is there anyone who can lead me to the information that I am looking for?
Posted by: Chris | February 18th, 2009 2:11 pm |
The final version of the bill, signed into law yesterday, probably won't be of much help. However, this morning's unveiling of $75 billion to help homeowners avoid foreclosure might be of help to you. Your lender should have more information, as well as whitehouse.gov. Fannie Mae and Freddie Mac should also be able to point you in the right direction.
Posted by: Miranda Marquit | February 18th, 2009 2:16 pm |
I recieved a 4% rate through this website http://www.freerateupdate.com it was the best thing I ever did and the lowest I’ve seen anywhere! you should check it out!
Posted by: Ms Guess | May 13th, 2009 1:16 am |
Wow, 4%, I guess I missed the boat. Mortgage Rates have gone higher, I did manage to find a 5.25% 30-year rate last week.
Posted by: Steve Bodi | August 12th, 2009 4:13 am |
5.25% is still pretty good! The 4% thing never made it in, obviously, but rates are still pretty low, even though they are on the way up.
Posted by: Miranda Marquit | August 12th, 2009 8:02 am |