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Will The Obama Mortgage Plan Help Me Get a Lower Mortgage Rate?

Posted on | March 1, 2009 | 5 Comments

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Beginning in early March, the Obama Mortgage Bailout Plan will start to affect mortgage rates.  The question is, will we really see lenders funding mortgages at interest rates below 5.5%.  There have been advertisements all over the internet and television claiming to offer refinancing rates at 5% and under, but very few home owners have been able to lock in at these rates.  The decline in home prices and lower credit scores have made getting a low mortgage interest rate very difficult.  The question remains, will the Obama Mortgage Plan help me get a lower mortgage rate?

The plan was built to assist in slowing down the rate of foreclosures.  By making mortgage payments 31% of your monthly income, President Obama and his staff feel that this will help in keeping people in their homes.  What many Americans do not realize is that part of the plan also benefits those who have been fiscally responsible through the economic crisis.  There are incentives from lenders to give you that advertised mortgage rate of 4.75%.  While the incentives are not known, it is likely the are monetary making it even more alluring to both the lender and borrower.

With this knowledge, it is a great time to test to mortgage rate market.  Many lenders need help from the government so they want to look like they are helping the economy by lending money to home owners.  Obviously, they will remain strict in their lending practices, but if you have a credit score of over 720 and you have kept up with your mortgage payments, you have a great chance to lower your mortgage rate to under 5%.

You will want to apply to many lenders as corporate scandal has shocked America.  This is not limited to just Wall Street, it is happening in the real estate market as well.  Lenders are trying to make as much money as possible through closing costs and fees and then they are letting the government bail them out.  Do some in depth research on what lenders have received great amounts of TARP money.  It would be advisable to apply to lenders that have avoided the subprime crisis and have strong financial operating statements.  A list of the better lenders is available here.

Feel free to comment with your stories of success and failure on trying to find a lower mortgage rates.  We always like to see what regions are actually lending money.

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Category: Obama Mortgage Bailout Plan

Comments

5 Responses to “Will The Obama Mortgage Plan Help Me Get a Lower Mortgage Rate?”

  1. » Subprime Blogger / Will The Obama Mortgage Plan Help Me Get a … » Subprime Mortgage Refinance
    March 1st, 2009 @ 6:53 pm

    [...] news by admin « Bad Credit Mortgage Lenders – Things You Should Know About … Inner Workings [...]

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    March 1st, 2009 @ 10:24 pm

    [...] Read the original:  Subprime Blogger / Will The Obama Mortgage Plan Help Me Get a … [...]

  3. » Subprime Blogger / Will The Obama Mortgage Plan Help Me Get a … » Mortgage Lenders in US
    March 2nd, 2009 @ 6:29 am

    [...] news by admin « How to find a good mortgage lender? – Zillow Advice Understanding Bad Credit [...]

  4. Mortgage Broker
    March 2nd, 2009 @ 11:48 am

    The banks will start lending again and providing the better rates once they have cleared their losses. They’ll continue to take money from tax payers in the meantime. The governments don’t seem to have any real control over the banks.

  5. Subprime Blogger / Will the Falling Stock Market Affect Mortgage Rates?
    March 2nd, 2009 @ 3:43 pm

    [...] Will the Obama Mortgage Plan Help Me Get a Lower Mortgage Rate? [...]

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