I said this over a month ago and you said I was crazy. Now the Republicans are trying to push this through on the current stimulus bill. Mark my words, there will be 4 to 4.5% mortgages for refinances not just purchases. It just makes too much sense. The economy is in freefall and people with money haver reigned in their spending. There are alot more people with equity, income and assets than distressed homeowners. Give everyone who qualifies a 4 to 4.5% 30 year fixed rate mortgage and you will unleash a torrent of new disposable income onto the economy.
Responsible homeowners with modest sized mortgages (i.e. conventional loans below 417K) will get a break of 1% or more on their loans and that is $300 to $400 per month of newly found discretionary income to spent on Flat panel tvs’ Lexuses and dinner at the Outback.
