Realogy's best-known real estate brands are Coldwell Banker, Better Homes and Gardens, Century 21, ERA, and Sotheby's.
Their proposal is similar to Dream Homes' own "4% Mortgage Solution," which we published more than a month ago...but there is an important difference.
- Realogy approached the U.S. Department of Treasury with this plan, which calls for a "short term" government buy-down in mortgage rates to at least 4.5% or lower (down from the current rate of about 6.04%).
- This "homebuyer incentive' would apply to the purchase of all new and/or existing homes up to $1 million in price.
- Realogy's plan differs from Dream Homes' own"4% Mortgage Solution" in that it does not cover people who are already in a mortgage. Our plan would apply to both existing borrowers and future buyers and people seeking to refinance. For a summary of the Dream Homes plan, click here. For our entire article, click here.
- "In our view," says Richard A. Smith, Realogy CEO, "the incentive of substantially lower interest rates would directly stimulate the housing market — both in sales volume and price — and thus accelerate the overall U.S. economic recovery."
- According to Realogy, there are a number of ways in which the government ultimately could decide to structure and fund this program, which could be addressed as part of the stimulus packages currently being discussed.
To read the Realogy press release on this plan — including their recent surveys of Realtors and consumers, click here.
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