Freddie and Fannie Mae

ANDOVER, MA

Government bails out Freddie and Fannie over the weekend

Posted by Mark Gracy under For Buyers, For Sellers, General Information
The government took over Freddie Mac and Fannie Mae this weekend. The lending giants hold approximately 5 trillon of the country’s home loans which translates to roughly half the exisiting mortgages in the USA. The government effectively is placing its guarantee behind the debt of both lending giants and will take over operating control in the form of conservatorship. The private sector translation of this would be someone filing for bankruptcy. The work-out process could take many months.
This bailout is seen as an inevitable stop gap to prevent a crash in the mortgage industry in the USA. While this bailout won’t necessarily directly impact exisiting home owners (other than the potential 200 billion bill which will get passed on to taxpayers) it could mean good news for new home buyers as mortgage rates are anticipated to drop potentially as much as 3/4 of a point. What does that mean? Now is a great time to buy! If you are in an adjustable or higher rate mortgage you now may be the time to look into refinancing. For more information contact me at 978-861-4016.

Mark Gracy
Your Real Estate Resource
mark@gracyteam.com
(office) 978-984-3107
(direct) 978-861-4016 tel & fax
AIM: markjgracy
www.GracyTeam.com
Keller Williams Realty
Serving The Andovers and Merrimack Valliey MA