1. Welcome to Baptist Board, a friendly forum to discuss the Baptist Faith in a friendly surrounding.

    Your voice is missing! You will need to register to get access to all the features that our community has to offer.

    We hope to see you as a part of our community soon and God Bless!

Treasury mulls plan to lower mortgage rates to 4.5%

Discussion in 'News & Current Events' started by KenH, Dec 3, 2008.

Top Posters
  1. KenH

    KenH Well-Known Member

    Joined:
    May 18, 2002
    Messages:
    41,975
    Likes Received:
    1,482
    Faith:
    Baptist
    Treasury mulls plan to lower mortgage rates to 4.5%

    Move would help homeowners and buyers with good credit, but would do little for troubled borrowers, experts said.

    By Tami Luhby, CNNMoney.com senior writer
    December 3, 2008: 7:40 PM ET

    NEW YORK (CNNMoney.com) -- Lobbyists are pushing the Treasury Department to consider a plan to purchase mortgage-backed securities in the hopes of driving mortgage rates to as low as 4.5%, an industry source said.

    Similar to an effort unveiled last week by the Federal Reserve, the proposal calls for Treasury to buy securities backed by 30-year fixed-rate mortgages from Fannie Mae and Freddie Mac. Details on the plan remain sketchy, but an announcement could come as early as next week, the source said.

    The increased demand for mortgage-backed securities would prompt mortgage rates to drop. That, in turn, would enable homeowners to refinance into lower-cost loans and make it cheaper for potential homebuyers to get into the market.

    - rest at http://money.cnn.com/2008/12/03/news/economy/treasury_mortgage_rates/
     
    #1 KenH, Dec 3, 2008
  2. ReformedBaptist

    ReformedBaptist Well-Known Member

    Joined:
    Aug 7, 2007
    Messages:
    4,894
    Likes Received:
    28
    I would re-fi if rates went that low.
     
    #2 ReformedBaptist, Dec 4, 2008
  3. carpro

    carpro Well-Known Member
    Site Supporter

    Joined:
    Oct 14, 2004
    Messages:
    25,823
    Likes Received:
    1,167
    Faith:
    Baptist
    Won't help the mortgage mess at all.
     
    #3 carpro, Dec 4, 2008
  4. Mexdeaf

    Mexdeaf New Member

    Joined:
    Mar 14, 2005
    Messages:
    7,051
    Likes Received:
    3
    Hmmm, maybe we shoulda waited to buy our house. That's two points lower than the loan we got two months ago!
     
    #4 Mexdeaf, Dec 4, 2008
  5. saturneptune

    saturneptune New Member

    Joined:
    Jan 16, 2006
    Messages:
    13,977
    Likes Received:
    2
    That is exactly right. The only way to get out of debt is to pay the money back with money you earned, not the government's, the American people's, or paperwork games to make the debt look better.

    The reason for the mess is greed, pure self centered greed. Greed on the part of homeowners who wanted instant gratification way beyond their income. The idea of starting off modestly and working up as income increased never entered their mind. Greed on the part of the lending companies and all their brokerage houses who sold loans to those they knew could not pay them back with no regard for qualifying the buyer.

    There is one way and one way only out of this mess. People have to save, live within their means, and pay back the debt they created.

    Adding tax dollars and playing paperwork games will only make it worse.
     
    #5 saturneptune, Dec 4, 2008
  6. rbell

    rbell Active Member

    Joined:
    Jan 16, 2006
    Messages:
    11,103
    Likes Received:
    0
    Right-O.

    For those who live within their means, a low interest rate would be good for the family. But, the following must be remembered:
    • It is significantly harder to get a loan. Many people will not qualify.
    • I know one here mentioned a re-fi...and this statement is not directed that way at all. But many people will want to re-fi and consolidate but yet never fix the underlying issue. That's what got much of our country in the mess to begin with. (Once again...there are good reasons to refinance, and I'm not referring to our gang here regarding that issue).
    • There is talk that ultra-low rates significantly weakens the dollar...which contributed to the oil price spike. I just hope someone smarter than me will keep that in mind. (and before TinyTim or LeBuick says it with a second from the peanut gallery...yes, I know there are many out there who would qualify on the smart-o-meter! :D :D ).
     
    #6 rbell, Dec 4, 2008
  7. carpro

    carpro Well-Known Member
    Site Supporter

    Joined:
    Oct 14, 2004
    Messages:
    25,823
    Likes Received:
    1,167
    Faith:
    Baptist
    My sentiments, exactly.:thumbs:
     
    #7 carpro, Dec 4, 2008
  8. Revmitchell

    Revmitchell Well-Known Member
    Site Supporter

    Joined:
    Feb 18, 2006
    Messages:
    52,013
    Likes Received:
    3,649
    Faith:
    Baptist
    They were required to give these loans because of government regulation.
     
    #8 Revmitchell, Dec 4, 2008
  9. saturneptune

    saturneptune New Member

    Joined:
    Jan 16, 2006
    Messages:
    13,977
    Likes Received:
    2
    I asked this in another thread, and never got an answer. Remember when we were kids, things like this were talked in the millions of dollars. Then as young adults, it was billions of dollars. In the last decade or so, the amount trillion surfaces more often. Does anyone think we will ever be talking in the quadillion range (1000 trillion), or do you think we will never make it that far?
     
    #9 saturneptune, Dec 4, 2008
  10. carpro

    carpro Well-Known Member
    Site Supporter

    Joined:
    Oct 14, 2004
    Messages:
    25,823
    Likes Received:
    1,167
    Faith:
    Baptist
    Hopefully I'll be dead before it does.:praying:
     
    #10 carpro, Dec 5, 2008
(You must log in or sign up to post here.)
Loading...