The financial and credit crisis has lingered on for over a year now, and today some of the biggest casualties are being seen. After 158 years in existence, Lehman Brothers is on the verge of bankruptcy due to overexposure of high-risk loans in the mortgage arena. Merrill Lynch is being acquired by Bank of America, which will save them from the same fate as Lehman Brothers.
What all of this means for you as a potential borrower, believe it or not, is much better mortgage rates. Mortgage Bonds appear to be a safer place with a better yield than US Treasuries for investor’s money right now.
In other words, today’s tragic news represents tremendous opportunity for mortgage borrowers in the short term. Therefore, we should float for now, and I will guide you on our timing for locking in possibly the best mortgage rates this year.
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