"President Obama on Monday announced new measures to help borrowers refinance their existing mortgages to new loans with lower interest rates and cheaper monthly payments.Our government does a have role here. Maybe that's part of what makes me a Democrat. This plan is for people who are not behind on their mortgages but who have 8%-10% loans that they can't re-finance because they've lost so much equity in their homes.
The plan is an expansion of an existing program to help borrowers who are not behind on their payments but cannot refinance because they do not enough equity in their home. Or they might be underwater--which means they owe more than their home is worth."
Banks refuse to re-finance these loans. Fuck that! Why wouldn't they, they're paying a .075% discount rate and making 8,9, 10 percent on their investment. Thirty-year mortgage rates right now are 4.25%. Those same homeowners paid a lot of money to bail those banks out three years ago. Bank of America and the boys need to cough up some new loans!
And by the way, I have a 5.125% loan, and a lot of equity in my home. But, I don't live in a vacuum.
