Saturday, March 12, 2011

Is the 30 year fixed rate mortgage becoming extinct?

Since most mortgage professionals and homeowners are so accustomed to the 30 year fixed rate home loan being around, is it possible that this program could become extinct? 

It’s the preferred home buying and refinancing option of most borrowers and banks; however, with the government planning to have less involvement in the mortgage industry this could be the beginning of the end for the “grandfather of all mortgages.”

Treasury Secretary Timothy Geithner said this week “lowering the government’s involvement in the mortgage markets would almost certainly restrict the supply of 30-year fixed-rate mortgages, while increasing their costs.”

This news could mean that homeowners and prospective home buyers will have even fewer options when they need a mortgage loan in the future.  more mortgage stuff

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