I was listening to an interesting story on CNBC a little earlier to day.  It seems CNBC was confirming a story in the Wall Steet Journal that the Federal Government was going to use mortgage giants, Freddie Mac and Fannie Mae, to push down mortgage rates to around 4.5%.

This would be a huge benefit to both current homeowners and people who would like to buy a home.  People could refinance out of subprime mortgages or ARMs and keep their payments affordable.  New home buyers will now have homes that are more affordable.  Home sellers would be able to sell their homes a little bit more quickly and, maybe just maybe, it would help stabilize home prices, in general.

You Still Need Good Credit

You’ll still need to have great credit scores, money for a down payment and full documentation of income, assets and employment.  However, it is still highly likely home buyers will be able to get concessions from sellers in order to pay closing costs.

The important thing would be to talk to a highly reputable and experienced lender who can help you work through either the refinancing of your home or the purchase of your new home.

This is still “just talk”.  Nothing has been set in concrete yet but if the Wall Street Journal is reporting it and CNBC is confimring, the chance are good that it’s coming down the pike.

Something that might interest you?  Just click on the Comment link at the top and let me know…or e-mail me.