Eligibility for new low interest rates? (sales, second mortgage, refinance)

[clamoore]

I have seen many reports indicating that a special interest rate will be made available for new mortgages. It is my understanding that this will be 4.5%. As I understand it, this will not be applicable to refinanced mortgages. Does anyone know if this rate will be available for new second mortgages?

[Elizabeth_G]

My understanding is that rate will be for new purchases only.

[joe moving]

any link to anything that gives the details of this??

[HB2HSV]

Here you go

Lower Mortgage Rates to 4.5%

Treasury mulls plan to lower mortgage rates - Dec. 3, 2008

[joe moving]

Thanks. I wonder how this is going to turn out. And wonder why they differentiate between new home buyers and existing qualified homeowners, with 20% equity, perfect credit, etc. I locked in yesterday at 5.0 with 1 pt, today it was 5.0 with 0 pt. I am told I can float down after the appraisal. Who knows maybe next week 4.5!!!! It is tough seeing the rates go down after you lock in.

[HB2HSV]

I know what you mean. Try to time this is very tough. I am closing on my house next Monday and I also just re-lock in my rate today.

[NicoleC]

Because they are trying to drive new sales and soak up excess inventory, not refi existing buyers.

You will almost certainly need to be a prime/perfect buyer: a credit score of 750+ with NO prior late payments on a mortgage loan.

However, with the Fed dropping rates to near 0 today, mortgage and refi rates will probably be dropping to very near that rate for prime customers anyway.

[HB2HSV]

Oh great... so much for my timing

[NicoleC]

You're still getting an awesome rate if you are locking in now. Don't sweat the pennies if you are happy with your new purchase.

Am I the only one who remembers the refi boom in the early 90's when people were gleefully refi'ing to get rates shockingly low at 8.5% (for prime buyers)?

[marmac]

NicoleC-----------I can relate to what you are saying.

I can recall paying double digit interest on my farm loan through Federal Land Bank and believing we would never see interest below 10% in my lifetime.

Imagine the trouble the housing mess would be in today if the interest rates was double digit ( like they were during the farrn crisis of nearly 30 years ago)