Elizabeth’s SPECIAL (Monday Afternoon) REPORT for 1st Time Home Buyers! (‘STUFF’ YOU GOTTA KNOW if you are planning to BUY YOUR 1ST HOME!)

Unless you spent this past weekend camping in the remote jungles of South America, you have probably already heard the news reports about the federal government's takeover of Freddie Mac and Fannie Mae. However, if you are not involved professionally in the real estate industry...you are probably asking "Who's Freddie Mac and Fannie Mae, and what's the BIG DEAL anyway?"

It is my pleasure to answer that question for you! (And, I promise NOT to sound like a real estate attorney or stockbroker!)

The Federal Home Mortgage Corporation, nicknamed Freddie Mac, and The Federal National Mortgage Association, nicknamed Fannie Mae, are privately-owned and operated BUT government sponsored enterprises (GSEs). These two entities are absolutely critical to the mortgage industry. Although they do not actually lend money, their presence ensures that there is a 'fresh' supply of money available to banks and mortgage companies to lend to YOU...the consumer. (Got your attention now...huh?)

Let me further explain. Freddie Mac and Fannie Mae buy mortgages from banks and institutions that originate loans and repackage them as bonds OR keep them under their own roof. As of right now, Fannie Mae and Freddie Mac own or guarantee about half of the U.S.'s $12 trillion mortgage market. (YES...you read it correctly...TWELVE TRILLION DOLLARS!)

Okay...now that you KNOW that the federal government's takeover of Fannie Mae and Freddie Mac is IMPORTANT TO YOU...would you like to know why? ::LOOKING AROUND THE ROOM TO BE SURE THAT EVERYONE IS PAYING ATTENTION::

As of noon today...30 Year (FIXED) Conventional Rates have DROPPED SIGNIFICANTLY:

30 Year Fixed Conforming: 5.625%-5.75% (depending on loan amount)

FHA: 5.875%

VA: 5.875%

USDA: 6.125 No origination, points or MI

***ARMS are not seeing any improvement at this point.***

In addition to the fantastic interest rates available to first time home buyers RIGHT NOW...there is also a new $7500 tax credit! H.R. 3221, the Housing and Economic Recovery Act of 2008, allows first-time home buyers to take a $7,500 tax credit from the purchase of a single-family home, townhome or condominium apartment.

IF EVER there was a time to buy YOUR 1st HOME...NOW IS THE TIME!

What are you waiting for? Give me a call today, and I will help get you on the road to home ownership! (919)749-3749

Written and Posted by:

Elizabeth Nieves - Broker, REALTOR® -- The Elizabeth Nieves Realty Group @ Keller Williams (A Bilingual Real Estate Team serving Raleigh, Durham, Chapel Hill NC and surrounding areas.)

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