Recession: Good news for mortgage companies

Despite mortgage companies going out of business, and housing companies feeling the pinch of the housing recession, many mortgage companies can benefit from a slow down in the economy. After 9-11, many mortgage companies flourished in refinancing borrowers multiple times as interest rates fell to historical lows. While these opportunities will be available again with the fed lowering interest rates, the types of borrowers, and mortgage companies being able to flourish will be diminished.

Why? With the credit market crunch, and investors requiring more of a return in order to purchase mortgage backed securities, many mortgage products have gone the way side. This, coupled with borrowers using their homes as their personal ATM machine for the past years will make it difficult to do as many refinances, unless you are keen to doing government loans, and know how to take advantage of the new FHA secure program that President Bush has implemented.

Yes, FHA, VA, or borrowers that can qualify for the FHA secure program will benefit from the government bailout, and Bernanke's decision to lower rates. Mortgage brokers that know how to market to these borrowers will also benefit tremendously. Borrower who are looking to refinance, but don't qualify for the traditional refinance should look at an FHA refinance. Rates are as low as 5.0% on a 15 yr mortgage, and 5.5% for a 30 yr mortgage as of September 17th, 2007. Borrowers who are currently in a FHA loan, or VA home loan should shop around for the best refinance rate. I, personally recommend www.correctlending.com. Along with specializing in using a decision making tool to help borrowers find the correct loan, borrowers can go to www.correctlending.com, and apply for a no obligation free quote for their refinance. It can possible save borrowers thousands, and years off their mortgage!!