On Tuesday December 16, 2008 The Federal Reserve announced that it was cutting key interest rates from 0 to .25%. This is very bold move to spark life back into our economy. But will this reduction have any positive momentum to the mortgage market?
The benchmark interest rate announced by the Federal Reserve is the lowest in its 95 year history. This move sent mortgage interest rates tumbling. But everyone will not qualify for a 4.5% 30 year interest rate.
FHA financing has enabled borrowers to refinance on a rate and term basis up to 97% of the value of their primary residence and up to 95% for cash out. But beware there are income and credit qualifications required to benefit from the new low rates. FHA does not have a minimum credit score requirement. However, many wholesalers have restricted borrowers to have a minimum score of 580 to qualify for an FHA loan. If your score is greater than a 640 you can see rates at 5% or lower. For borrowers with greater equity in their homes of 75% or less and credit scores of 680 or better have an opportunity of securing conforming rates at the 4.5% level.
This is now the time to review your current situation. These rates are now at historic lows that may only be seen once in a lifetime. But remember you are entitled to receive full disclosure about any loan that you apply for and should only be discussing fixed rate financing options with these low rates.
Don't wait! Call now 1-800-480-1917 or simply go to www.SaveThousandsOfDollars.com.
