Rapid Refinance Program and Check on rates...

As many as 30 million U.S. homeowners would be able to refinance their mortgage at record low interest rates regardless of their income, credit history or loan-to-value ratio under a plan to be unveiled on Tuesday by a Democratic lawmaker.

The legislation would allow for blanket 30-year, fixed-rate mortgages at the prevailing market rate, now around 4.3 percent, for anyone seeking to refinance a government-backed loan, Representative Dennis Cardoza told Reuters on Tuesday.

The plan would help a wide swath of borrowers and is much more comprehensive than the narrowly targeted efforts President Barack Obama has tried to date.

While this is purely seen in the mortgage market as political posturing (the representative that proposed the bill is up for re election and has been strongly against Obama's current foreclosure prevention efforts)it has been talked about in various forms or fashion for months now. Any action taken on this will come with extreme advance notice (think several months) as the ramifications to the secondary mortgage market would be severe, and in my opinion would likely foretell a complete dismantling of Fannie Mae and Freddie Mac which may be difficult to sell. Does the American tax payer really understand what happens if Fannie Mae or Freddie Mac are shut down? I doubt it.

Is the rapid refinance program a cure all? Will people start making their payments at a lower rate even if they are upside down on their mortgage note. President Obama's current refi program says no as only 30% of all enrolled are making timely payments. Until the issue of negative equity is dealt with, there will be no cure for what they are trying to fix.

...In other news mortgage interest rates continue to hold steady. On loans amounts above 150K you should be able to obtain a very low 4% 30 year rate with no points or origination fees. 15 year notes are ringing in around 3.75%. These rates are based on 9/28 and may have changed by the time you read this. Bottom line, there is still money to be borrowed and at great terms. Hope to hear from you soon!

Adam Simmons
936-447-LOAN
Crystal Clear Mortgage