Plan for 4% interest rates defeated

From the desk of:

Rich Storey
Mortgage Advisor
615.260.8028


Democrats defeat GOP plan on mortgage rates

WASHINGTON (AP) — A plan by Republicans in the Senate aimed at pushing mortgage rates lower has gone down to defeat at the hands of Democrats.

The plan by Nevada Republican John Ensign would have encouraged banks to issue mortgages with interest rates of 45 to 4.5%.

The government-controlled mortgage giants Fannie Mae and Freddie Mac would have bought the mortgages on the secondary market. Jumbo loans would have been ineligible.

Democrats killed the idea Thursday night by a 62-35 vote.
The plan also contained an assortment of expensive tax cuts such as cutting the bottom 10% income tax rate in half for two years.

Credited to: www.USAToday.com