In late November, an announcement that the Federal Reserve and US Treasury would purchase up to $600 billion in asset-backed securities over the next year or so sent mortgage rates on many programs plunging below 6%. This is a bold step by our federal regulators towards a more stable economy. Not only will this increase the availability of credit, but it should help support the housing and financial markets as well. For new buyers and for homeowners looking to refinance, this is great news - especially borrowers with adjustable-rate mortgages.

Current Homeowners - those who have been on the fence about refinancing should investigate their options quickly. Remember, interest rates are incredibly volatile and extremely susceptible to news events that directly affect the economy, especially in today's marketplace. Whether you're looking to lower your interest rate or hoping to switch into another more stable program, applying now and locking in a lower rate will save you a lot of money. Make sure your mortgage professional has the knowledge and ability to access and follow the performance of mortgage-backed securities in order to get the best mortgage pricing available.

New and First-time Buyers - interest rates near historic lows, home prices at 2003-2004 levels in many markets, and a tax credit up to $7,500 for first-time buyers (anyone who hasn't owned a home in the last three years) all make for a great opportunity to purchase the home of your dreams at a major discount.

Cash-strapped Borrowers - low and no down-payment programs still exist through the government, including Federal Housing Administration (FHA), the Veterans Benefits Administration (VA), and the US Department of Agriculture (USDA).

For FHA loans, the down-payment requirement has increased this year, but it's still only 3.5% which isn't bad for a government-secured mortgage. With a VA loan, 100% financing is available to eligible veterans and, for non-vets, 100% financing is available in many communities through a loan guaranteed by the USDA. It's important to note that VA and USDA loans also do not require monthly mortgage insurance like FHA loans, creating even more savings for these special mortgages. If you're looking to take advantage of today's buyers' market, be sure to ask your mortgage professional about these special programs.

Go to www.LegacyMortgageNM.com to get started.