The Fannie Mae and Freddie Mac Bailouts: What’s It To You?
By Geoff on Sep 8, 2008 in Credit & Debt, Saving & Investing | Post a comment
The bailout of America’s mortgage giants could have a profound impact on your personal finances.
Let’s face it. The economy is awful right now. It’s a mess that has taken a long time to reach critical mass, and it will take a while to get it all straightened out.
The mortgage giant bailout affects every homeowner seeking a mortgage. On the positive side, most analysts believe that Sunday’s takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage.
The government bailout’s goal is to make mortgages easier to obtain and afford. By reinforcing the mortgage financing giants, they can continue buying mortgages from lenders and thus inject much-needed cash into the system. Continued
