I hope not. If he did this 3 years ago instead of the”stimulus” the major problem in our economy would be well on it’s way to being fixed. I’m paying close to eight percent. Can’t refinance because house is under water. I’ve paid every bill for the last 30 years and not asking for a reduction in principal. What are the Morgage companies paying for green backs, 1%, I think they can get by on charging me 4.5%
I agree with you.
I am a homeowner who unfortunately got convinced that a interest only loan for 5 years and then adjustable thereafter was a good thing. I make an excellent income and have never had a late payment for almost 7 years. Yet, under the stupid old rules, I would not be permitted to refinance my home without a huge amount of capital, because the value of my home went from $305,000 to $155,000.
Even having the legal experience I have as an attorney, I am having a hard time understanding why these past rules were economically sensible. Admittedly, I don’t know the ins and outs of mortgages, but this is baffling to me. To me, it appears those rules were a Congressional protection payoff for greedy and unethical banks, who as we speak, are continuing to hoard properties, prolonging our housing crisis until interest rates skyrocket.
Why did the first plan give people that are the absolute worst risks imaginable the first leg up, when they were and still are almost certain to foreclose, even with the government’s intervention? That, to me was abslutely idiotic.
This plan actually helps responsible people who can pay their mortgages, instead of allowing them to eventually be foreclosed on when double digit interest rates inevitably swallow them up.
This will be probably the one and only time you will ever hear me say this, but I think this is the best thing Obama has ever done.