DROdio Real Estate

By now you've heard about the Fannie, Freddie and IndyMac crisis and probably wondering what this means for you?  After all, if you're in the market to buy a home, own a home, or have money in the bank you're at the very least concerned.  The viability of Fannie Mae and Freddie Mae, the nations largest holder of mortgage backed securities was at risk due to the US mortgage crisis prompting the federal government to step in.  IndyMac falling along the same lines also prompting government involvement led to IndyMac's closure and subsequent receivership by the FDIC.  Significant news, we know.By now you've got questions, well we've got some answers.I Own A Home, What Does This mean For My Home Value?Given that Fannie and Freddie Mac hold about 5.3 trillion of the mortgage debt, the efforts put forth by the government to shore up these two entities is a positive move in the long run.  By giving them a level of stability needed in today's economy, housing prices may stabilize as a result of this move.  Why?  They hold almost half of the mortgage debt held in the United States and therefore they are critical to keeping the mortgage industry on its feet.But I'm In The Market To Buy A Home, What Does This Mean For Me? If you're in the market to buy a home you can rest easy.  By the federal government stepping in, this eases fears around any collapses as it relates to Fannie Mae or Freddie Mac.  These two companies back almost half of the mortgage debt and keeping them afloat only serves to help current and potential homeowners in the long run.  This gives consumers the needed confidence to stay in the market which gives the economy a needed boost.Is My Money Safe?Is it under $100,000?  If so, then yes.   However, if you have more than $100,000 in an account then you should make sure that it is insured as the FDIC only insures accounts up to the $100,000 mark, $250,000 for IRA accounts.  The market here in the DC Metro area makes it such that down payments over $100,000 on homes wouldn't be at all uncommon.With the current IndyMac situation, it's been stated in various news media sources that the FDIC will cover up to 50% of uninsured balances but account holders shouldn't hold their breath waiting for their money.  The lesson here is that maintaining accounts over the $100,000 mark without insurance is akin to driving without a seat belt.  Catastrophe ahead.For those of you with uninsured accounts over the FDIC's insured limits may wish to check this website for more information.  Keep in mind you will need to check with the institutions for current rates and information.

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This entry was posted on Tuesday, August 12th, 2008 at 10:58 pm and was filed under All About Home Financing & Loans, drodio.com. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.