Understanding Mortgage Rates | dripp inc | Home Equity | Refinancing and Remortgage Guide

Good Afternoon,

If there was ever a time that a huge drop in mortgage interest rates could make your stomach queasy, it is among us right now.  I assure you that this is no hype or rouse.  We are actually coming close to January and February’s rate levels.  The question is: Are you going to take advantage of it this time around?  Many people missed this chance a few months ago and it is our responsibility to inform and help those people now.  Tell everyone you know.
 
Here’s the inside Dripp…

The mortgage giants, Fannie Mae and Freddie Mac, have been saved.  The U.S. government agreed to bail them out over the weekend.  Talks about this have been going on for months and now that it is a reality rates have initially dropped by a big margin. 

Why is this happening?

Since the government is taking over, investor’s risk in mortgage debt minimizes, so they are more apt to offer lower interest rates.  The basic idea is this: low risk equals low rates, high risk equals high rates.  This is why we have recently been seeing rates go higher.  Investors felt that mortgages were becoming riskier and riskier, but because of today’s big news we are seeing the drop everyone has been waiting for.

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