MORTGAGE UPDATE!
Greetings.
This valuable information is re-posted with the permission of the writer, Bob Antonelli.
Every now and then I come across something of great value in understanding the marketplace in its current state. I believe the following Special Update is a great piece that meets that criteria. Please give it a read.
Furthermore, I am attaching a Summary/Q&A/FAQ that was put out by NAR when the First Time Homebuyer Tax Credit was put out at the end of July. The First Time Homebuyer Credit runs until June 30th, 2009. Be sure to review “Question #15”! While I am involved in financing homes, I am not an accountant. For detailed explanations I would recommend any consumer to speak with their tax advisor.
SPECIAL UPDATE: From MBS Quoteline (source)
Government officials have been under enormous pressure to help stabilize home prices and prevent foreclosures. At the same time, they don't want to appear to be using taxpayer money to bail out undeserving individuals and institutions. As Fed Chief Bernanke stated, the solution may involve a "full range of coordinated measures" aimed at different aspects of the problem.
The government has already put many programs in place, and others are under discussion. The Fed and the Treasury have used billions of dollars to provide financial institutions with capital to make loans. Last week, they instituted a program to buy MBS to push mortgage rates lower. Yesterday, the Treasury announced that it is considering a plan which would offer below-market mortgage rates for some loans used to purchase homes. The program being discussed involves the Treasury investing in MBS guaranteed by Ginnie Mae, Fannie Mae, or Freddie Mac, which contain purchase money loans at a specified rate (4.5% was the initial proposal). The lower rates will not be available for refinancing loans. There has been no indication that these loans will have special underwriting or eligibility requirements.
Keep in mind, the timing and the final form of this latest program is not known. As we have seen recently, most notably with the $700 billion TARP rescue plan, government programs can change significantly before their implementation. The incentive to execute such a plan is compelling, however. Lower mortgage rates make homes more affordable. As more people purchase homes, prices will stabilize more quickly and new home construction will pick up, giving the overall economy a much needed boost.
See Live MBS prices and analysis at www.mbsquoteline.com (800-627-1077)
I welcome your call and look forward to serving you in the future as your Mortgage Specialist!
I can be reached at any of the numbers below.
Sincerely,
Bob
Robert "Bob" Antonelli
Mortgage Loan Officer
First Place Bank
(440) 716-8252 direct
(800) 300-8013 x7610
(440) 779-0883 fax
rantonelli@fpfc.net email
www.easylending123.com web 24/7
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Regards,
Barb