Use access key #2 to skip to page content.

IBDvalueinvestin (99.67)

How I will save $207,360 over 30 years on Fed. Stimulus Plan

Recs

1

February 03, 2009 – Comments (9) | RELATED TICKERS: DHI , NVR , RYL

you too can take advantage of the refinance at 4% to 4.5% , I plan on refinancing my mortgage as well. I will save $576/mo for 30 years.

Thats a $207,360 savings over 30 years.

Those that don't take advantage obviously must have a screw loose if they don't want to save that much money.

 

Government to give $15,000 to all buyers of Homes and lower rates to 4%- 4.5%

Housing aid gaining steam in stimulus bill Housing plans gather support as Senate takes up economic recovery package Alan Zibel, AP Real Estate WriterMonday February 2, 2009, 6:00 pm EST Yahoo! BuzzPrint Related: Bank of America Corporation, Beazer Homes USA Inc., Centex Corporation

WASHINGTON (AP) -- Homebuyers could see lower mortgage rates and get tax credits as part of a sweeping economic stimulus package being considered on Capitol Hill.

Lawmakers are heeding the pleas of two powerful and well-heeled interest groups: real estate agents and homebuilders. Those industries have lobbied hard in recent weeks for more expansive assistance for their flailing members.

The Senate took up an $884 billion version of the stimulus legislation on Monday after an $819 billion version passed the House last week without a single Republican vote.

Any government aid for the housing sector should be temporary and apply to all buyers to help boost sales of expensive homes as well as low-priced ones, said Wachovia Corp. economist Mark Vitner.

"Nobody wants to buy a home before prices have bottomed out," Vitner said. "Unfortunately if everybody has the same idea, prices are going to keep falling."

With median sales prices back to levels last seen in mid-2003 and rates on 30-year mortgages hovering around 5 percent, homes have become far more affordable in most of the country. But some economists say they still have further to fall, particularly in former bubble markets like California and the Northeast.

Plus, some question the amount of money going toward relatively wealthy homebuyers, instead of renters or those who can't qualify for a mortgage.

"I'm amazed," said Dean Baker, an economist and co-director of the liberal Center for Economic Policy Research in Washington. "We're giving people way more money -- just because they bought a home -- than if they're unemployed."

Meanwhile, Senate Minority Leader Mitch McConnell, R-Ky., told reporters Monday that Republicans would offer a plan to have the government step in to reduce mortgage rates to around 4 percent, which could shore up home prices and lower housing payments for millions of Americans.

"A stimulus bill must fix the main problem first, and that's housing," McConnell said. "That's how all of this began. We think you ought to go right at housing first."

Republicans want to have banks lower the interest rates to 4 percent or 4.5 percent on 30-year fixed rate loans, up to a certain cap. Rates could drop if Fannie Mae and Freddie Mac agreed to buy the mortgages.

The two companies were seized by the government in September, and have bought the majority of the new home loans issued over the past year because Wall Street's appetite for mortgage securities has vanished. The new rates would be available through 2010 for both new purchases and refinanced loans.

Sen. Charles Schumer, D-N.Y on Sunday told "Face the Nation" on CBS that Democrats would support a GOP-backed idea to double a home buyers' tax credit from $7,500 to $15,000 and make it available to all buyers instead of those purchasing their first home. He also said the Obama administration is considering ways for the government to lower mortgage rates.

"There seems to be real bipartisan support for a stronger housing focus," said Mary Trupo, a spokeswoman for the National Association of Realtors, which has rallied its members to push for more aid to the hobbled market.

The Realtors group spent more than $17 million on lobbying last year, with more than $6.5 million coming in the final three months, according to disclosure forms.

The building industry, which has been devastated by the housing bust, has been pushing a package of subsidies that would bring mortgage rates to just under 3 percent for the first half of this year. The National Association of Home Builders -- which spent more than $4.5 million lobbying last year -- favors a tax credit of up to $22,000 for home purchases.

Associated Press Writers David Espo and Andrew Taylor contributed to this report.

 

9 Comments – Post Your Own

#1) On February 03, 2009 at 1:41 PM, SharpSEO (68.78) wrote:

It says homebuyers, not re-financers. I don't think re-fis will be part of the deal, that would cost too much.

Plus, I don't think the lobbyists working for real estate interest groups give a crap about re-fis. They just want to keep overinflating the housing market, and screw people who already bought.

Report this comment
#2) On February 03, 2009 at 2:09 PM, DemonDoug (73.55) wrote:

I will save twice that much (or more) by not buying a money pit that is called "real estate."

Report this comment
#3) On February 03, 2009 at 2:09 PM, IBDvalueinvestin (99.67) wrote:

You can't read well can you?? Re-read these two paragraphs, see last sentence:

Republicans want to have banks lower the interest rates to 4 percent or 4.5 percent on 30-year fixed rate loans, up to a certain cap. Rates could drop if Fannie Mae and Freddie Mac agreed to buy the mortgages.

The two companies were seized by the government in September, and have bought the majority of the new home loans issued over the past year because Wall Street's appetite for mortgage securities has vanished. The new rates would be available through 2010 for both new purchases and refinanced loans.

 

Report this comment
#4) On February 03, 2009 at 2:26 PM, djemonk (< 20) wrote:

Are you really saving this money or are you just losing less via debt payments?

Report this comment
#5) On February 03, 2009 at 2:32 PM, IBDvalueinvestin (99.67) wrote:

I actually am saving this much by reducing the interest rate I currently hold. I pay $2,400 currently but It will drop by $576/mo with the lower rate.

Report this comment
#6) On February 03, 2009 at 2:35 PM, redclaymud (69.23) wrote:

I'm for dropping everyone's mortgage rate four points, to a bottom of 4%.  Do it without refinancing, lawyers, realtors and closing fees.

As I see it, that's the only thing the dems stimulus package needs to do.  Cut the cost of housing and make it affordable again.

It was bad mortgages that got us into this mess, so let's work on making less of them bad.

 

 

Report this comment
#7) On February 03, 2009 at 2:48 PM, TigerPack1 (96.35) wrote:

Crazy idea.

If we all refinance at 4%, the government will have to print between $10 and $15 trillion in new money!  You cannot force the banks to take on the loans a good 1.5% below market determined rates, neither will investors or the Chinese buy this new debt in chunks.

Has anyone done the math on this idea?  It would SURELY bankrupt our currency, and send inflation rates skyrocketing.

There will no longer be a mortgage market, and the government will have a lien on EVERYBODY's home!   Sounds like a Communist/Socialist grab at taking over the U.S. economy.

I thought the Republicans were AGAINST Communism and FOR free markets.  I guess I was mistaken!

A better idea to stimulute the economy/spending/real estate and fix the banking sector is send a $5000 check to every U.S. citizen regardless of age.  Large families with no money right now will spend it like crazy.  The rest of us will save/invest or pay off debt, putting mountains of money in the financial system and replenishing savings.  The government wouldn't/shouldn't target economic sectors or save any particular large political contributor bank; consumers and investors would decide who survives!  (This plan would cost about $1.5 trillion and create a massive spike in confidence and spending OVERNIGHT!)

Report this comment
#8) On February 03, 2009 at 2:52 PM, IBDvalueinvestin (99.67) wrote:

I like saving $207k over the longterm than your $5k short-term fix.

Report this comment
#9) On February 06, 2009 at 8:50 PM, SharpSEO (68.78) wrote:

"You can't read well can you?"

I usually can, sorry. Missed the re-fi sentence, I had a beer or six that night. Will be interesting to watch. Everything else I had seen indicated this would be for new purchases only, not re-fis.

Report this comment

Featured Broker Partners


Advertisement