I expect the “happy talk” from Paulson, but not from Buffet..
I don’t think that the credit crunch is anywhere near over.
It looks like you need at least 25% equity to do a NO CASH OUT “JC” refi at the lower rate but can still get the better rate with 20% down on a purchase. (An 80% refi is still pricing higher, same as yesterday about 6.125%)
It’s just one more attempt to save a few people from doom.
It’s not going to help anybody who is underwater or who cannot qualify full doc.
There has been a lower back end DTI ratio on JC loans, which I think is still in place.
If I get updated specific guidelines I will post them later.
This is going to reward people with good credit scores who could actually afford a higher rate & payment to have a lower one!
