Republicans want a stimulus bill that now reaches close to $900 billion to include provision that would drive down mortgage rates to nearly 4%.
With this provision Republicans want to jump start the housing market, bring more buyers and allow current homeowners to refinance to lower rates.
Compare mortgage rates free: http://www.ratetake.com/
This new provision can save up to $200 a month on monthly mortgage payments, thus savings of over $2400 per year are possible.
Fannie Mae and Freddie Mac, would provide these new loans which has a vast variety of mortgage network from lenders, brokers, loan officers to provide these loans. The program would be capped at $300 billion.
This new program would lure many new buyers into buying homes as save money on cost as well. The National Association of Realtors estimates that this program would sparks about half a million home sales.
With more buyers coming into market, it will reduce inventory and it would allow stability in real estate market.
More foreclosures are coming and with lower mortgage rates, foreclosures will be vastly reduced, thus allowing home prices to rise again.
The Senate began debate on stimulus package on Monday with hopes of reaching a vote by Friday.
Republicans want to have mortgage interest rates lowers to 4 percent or 4.5 percent on 30 year fixed rate loans. Rates can eve drop further if Fannie and Freddie will buy these loans and service them.
Refinance Rates:
Compare mortgage rates free: http://www.ratetake.com/
