The Fed is now buying Fannie & Freddie mortgages like it's going out of style so that the yields on the notes goes down (remember the inverse price/yield relationships of bonds) and the marketplace gets good mortgage refinance rates, currently in the 4.x range. If your mortgage is held by Fannie or Freddie and you want to refi, go ahead; we're borrowing it from the Chinese....
Details at Making Home Affordable.
2 comments:
At last you can get refinancing through Fannie or Freddie. I'm having no luck at all refinancing mine since I know the house is worth less than what I bought it for.
The rules are geared towards that situation; so long as you're not underwater on the mortgage, the house value isn't relevent.
Oh, and it doesn't apply to me since Navy Federal keeps its mortgages.
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