Refinance Plan B(2).

In one of my previous posts, I mentioned a time-line of the Feds purchasing mortgage backed securities until July of 2009, and based on that time-line, was recommending that clients start the refinance process now to be in the optimal position to lock-in on a great mortgage rate.  Remember, once your loan is approved and out of underwriting, you can take advantage of a lower interest rate on a shorter term 15 day lock-in (usually 0.25% better in rate than a 45 or 60 day lock-in). 

Today, the Feds announced that in addition to the $500 billion dollars they had previously committed to purchase mbs’s, they will be purchasing another $750 billion dollars in mortgage backed securities, extending their current plan through the end of the year. 

This makes the argument of needing to get in line for underwriting that much more convincing as THE way to get ready to refinance your mortgage.  It is too early to tell if this move will cause mortgage rates to go lower or if it will simply help keep mortgage rates at their current (historically low) levels.

More coming soon . . .

 

Jeffrey Pinkerton is a Mortgage Consultant and President of Hillside Lending, LLC and writer for “the Mortgage Blog.”  Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing.  For more information about available programs and interest rates, please visit www.hillsidelending.com