Mortgage rates drop to once unthinkable lows at less than 4% [View All]

[TomCADem]

Source: LA Times

The Federal Reserve's latest effort to prop up the economy has dropped mortgages into once unthinkable territory, with 30-year fixed-rate loans available for less than 4% — a record low.

For people lucky enough to still have their credit ratings, bank accounts and home equity in good shape, the change means the opportunity to refinance at rates that once seemed unimaginable.

"I can remember when I thought 7% was a great loan," said Roger Hornbaum, a retired city of Orange employee who has already refinanced his home on California's Central Coast twice since purchasing it last year. "After the news this morning, maybe I'll be getting another call from and be trying it again sometime soon."

Hornbaum's broker, Jeff Lazerson of Laguna Niguel, said clients who pay closing costs and a 1% fee to him are refinancing into 30-year fixed-rate loans at 3.75%.


Read more: http://www.latimes.com/business/la-fi-mortgage-rates-20110924,0,3813739.story

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I think Republicans will argue that we should deregulate mortgage loans once again and encourage lenders to extend loans to anyone who can fog a mirror to jump start construction. Bring back the stated income loans!