Fannie Mae Freddie Mac Bailout

by Pauletta from Willoughby, Ohio USA

Regarding the Fannie Mae and Freddie Mac Bailout Should the Federal Government bailout Fannie Mae and Freddie Mac? I guess that they should, but unfortunately it will be at the taxpayers expense.



I guess the reason I say they should is because just recently I had a certificate of deposit for a large sum of money at a bank that went under. Fortunately, the bank was FDIC insured, so I got my money back. When you purchase something and know the government is backing it up, you feel safe.

When people buy their homes they use Fanny Mae/Freddie Mac national mortgage because it is government sponsored. I assumed a mortgage on my home that way, over 27 years ago with a fixed 10% rate mortgage. It's funny, when you say 10% people are amazed it was so high, but I assumed it at a very low rate.

Most people shopping for mortgages during this time (1980-1982) were getting 12 - 14% interest. Fortunately, my home is paid off now.



Recently, in the past 6 or 7 years so many people bought homes with the flexible interest not knowing that this recession was going to happen. Who knew that gas would be $4.00/gallon?

I still think that Fannie Mae and Freddie Mac are the way to go and hopefully things will turn around.


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Fannie, Freddie , Mortgage Rates and More
by: Kate Ford

Pauletta,

Thanks for such an experiential and informative post. I was laughing to myself about 10% being a low mortgage rate. Yes, it IS all relative isn't it?

We danced about the mortgage office when the best interest rates dropped into single digits not much more than 10 years ago. There were those in our industry who NEVER thought we'd see mortgage interest rates below 10% and they got a big surprise.

And as far as the ARM program goes, we never know what the future will hold. The big mortgage companies promised to be around to refinance the short term adjustable rate mortgage so popular a few years ago. Most of those companies no longer exist to offer the help so desperately needed by home owners with subprime mortgage loans.

For any home owner who still has a subprime mortgage, find my unique remedy at Subprime Mortgage.

In the overall picture, we still need Fannie Mae and Freddie Mac. I guess for right now we just don't know what our need is going to cost.

But one thing I am sure of. Home ownership makes America strong.

If you'd like more on my favorite subject, how to get your best mortgage rate, visit my blog at Kate Ford's Best Mortgage Rate Blog.

Kate


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