If you haven't heard by now, early this week the government took control of mortgage giants Freddie Mac and Fannie Mae. With this potentially one of the largest bailouts in the making, many people are asking what this will mean for the average person.Loan Availability
One of the hopes is that this action will lead to more loan availability. Due to the soft real estate market and the credit problems stemming from exotic mortgages, lending companies have tightened lending standards quite a bit. This means that many people are simply unable to find a lender willing to lend to them unless then have very good credit or a substantial down payment. This takeover doesn't mean the days of 0% down loans and the ability to get a good low interest mortgage with poor credit are back, but this should begin to ease some of the restrictions.
Even so, it is still more important than ever to make sure you're saving up for a down payment, and you're maintaining a quality credit score if you're in the market for a new home. The more money you can put down, and the higher your score, the better terms you'll receive, and the more likely you will be to get approved for the loan you want.Mortgage Rates
Immediately following the takeover announcement, the 30-year mortgage rate fell nearly a half of a percent. What does this mean for you? Well, if you currently already have a fixed rate mortgage, your rate won't change. If you are in an adjustable mortgage, this won't have much of an effect since these rates are not tied to the standard 30-day fixed rate. The good news comes to those who are currently in the market for buying a new home, since you'll now be able to get a fixed mortgage for a bit less than just a week ago.