4% Mortgage Rates?

Federal lawmakers are mulling the idea of setting mortgage rates at 4%.  Without getting TOO excited, this would be a huge stimulus for real estate and the economy but the chances of this happening is probably less than 50%.  Lower mortgage rates allow homeowners to refinance if they have sufficient equity and allow buyers to take advantage of “never seen before” interest rates.  One way this stimulates the economy is it allows more homeowners to keep more money in their pocket which triggers more spending on other things. 

Let’s assume someone is buying a house for $480,000 and plan on putting down 20%, assuming a mortgage principal of $400,000.  Monthly payment for that loan amount will be under $2,000.  That is crazy low!  A loan amount of $200,000 will give you a monthly payment of under $1,000!  Let’s get there!

Here’s to hoping the lawmakers get this done so we can revive the real estate market!

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