From http://www.whitehouse.gov/refi:
President Obama wants to help millions of responsible homeowners save hundreds of dollars each month by refinancing their mortgages.
Why refinance?
Today, home interest rates are at historic lows—on average, below 4 percent. The average homeowner could save $3,000 a year by refinancing at today’s low rates, but far too many borrowers are locked out of a chance to do so. Complicated application processes and eligibility requirements, costly appraisals, and the fact that many homeowners owe more on their mortgage than the value of their home make refinancing all but impossible for millions of Americans.
What is President Obama’s plan to help homeowners?
President Obama’s plan is simple: make it easier for millions of responsible homeowners to refinance, even if they are underwater, regardless of who owns their mortgage. The President’s proposal would establish a quick and hassle-free process for homeowners who are current on their mortgage payments and want to refinance—no more tax forms, and no more appraisals—just a lower interest rate, and lower payments each month.
What about underwater homeowners?
When the housing bubble burst, home values dropped, and millions of homeowners who did the right and responsible thing—shopped for a home, secured a mortgage, and made their payments on time each month—were left with houses worth less than they paid for them and mortgages worth more than their homes. Today, many of these homeowners are locked out of refinancing because they are underwater.
President Obama’s proposal is specifically designed to reach underwater homeowners, and no borrower would be locked out of refinancing because they owe the bank more than the value of their home. In fact, underwater homeowners can choose to refinance into a loan that will help them rebuild equity more quickly.
How does refinancing help the economy?
Millions of homeowners who refinance could see hundreds of dollars in savings each month, but that money does more than just help individual families. Those homeowners will have more money to pay bills, more money to spend in shops and restaurants in their communities, or more money to save for college or new car. In turn, this spending—made possible by refinancing—will benefit our entire economy, and help spur the growth we need.
Where’s my “refi”?
President Obama’s refinancing proposal requires Congress to act, and until they do, millions of families will be prevented from refinancing and saving hundreds of dollars each month.
I’m reading an alful lot of racist remarks on here. I can’t believe in this day and age how many of you there still are. If this would have been GW doing this you would have all stood up and cheered. I’m also guessing that most of you call yourselves christians. How sad.
Matt Rezab if you think 90 percent plus of us Americans admired Martin Luther King you are soooo wrong, child. King was a communist troublemaker that cheated on his wife. He slept with white women, too! He was an alley cat scuz ball and when he got shot millions of Americans were not at all upset. I remember.
Racist much?
Geez. I guess it doesn’t matter any more how risky the loan is or how much interest you are paying for the money you are lending out! So what if the lenders have to take another loss on risky loans that they may be paying higher rates to acquire to lend. The Democratic Congress, Clinton, and ACORN made it clear when they loosened the credit for purchasing homes during the 90’s that the 3 C’s of credit no longer mattered: Collateral, Capacity, and Character. A banker’s creed was that if there was no character, the other 2 C’s didn’t matter. Don’t make the loan. All the new housing lenders cared about was the collateral and to hell with the character and the capacity. Now all Obama cares about is trying to change the rules so people have the capacity. The collateral went to hell and character doesn’t count, so all you can do is try to do something about capacity. If the Democrats and ACORN had let bankers stick to their original creed, this wouldn’t have happened! This all started back in 1977 under Jimma Carter when ACORN started protesting against redlining practices by banks. Banks were forced into lending money to less than desirable customers in less than desirable parts of town and things went downhill from there, lead by ACORN and the Democrats.
If you were holding paper on a house you sold on contract to someone for 6% and you owed the bank 5.5% on it, how would you feel if this new law applied to you and all of a sudden you had to give your purchaser the balance of the contract for 4% but the bank had no obligation to give you a lower rate because you weren’t living in the residence, or for whatever reason. That is the situation some lending institutions may find themselves in. I have a universal life insurance policy that pays me a minimum interest rate of 5% interest. How are they going to make money if they have to lend it out at 4%? They’ll be losing money. I hope Congress takes a long, hard look at this and realizes that it could hurt our lending institutions once again.
I agree that Obama is doing anything and everything he can to pander to anyone who needs a handout or a hand up. Who do these people think are going to foot the bill once less than 50% of us are working and paying taxes? It’s going to be a very harsh reality for people when the gravy train finally has to end, because it will. Either it ends, or China owns us. Period. Which do you want?
and I approve this message.
Bobby G your right Obama is trying to cause a race war he sure is. I tell you what, we ain’t played cowboys and ni**ers yet now have we.
Give him another 4 years and we will. I’m waitng for him to start giving them goverment land and foreclosed property. Didn’t Africa have something like that happen. They took all the land away from the farmers and gave it to the tribes. Then they ended up starving beause they didn’t know the first thing about farming.
So how do you define who the responsible homeowner is versus the idiot who just bought way more than they could afford. I agree this is just another ploy like free passes to all illegals to get votes. He’s the lowest form of scum bag.
My parents bought a house and it was valued at 85,000 then they remodeled and added on and it was valued at 125,000. Now my father is dead and the payments are too high for her SS and the house is now valued at 65,000 because of the market. She cannot refinance because she owes more than what they value the house is but she is still making the payments. It takes almost all she has but she is still making the payments. He can give out all the money he wants, make sure the banks refinance but until the housing market goes back up it won’t do any good.
Your right Scam, he is the Free Lunch King. But he will probably end up like another King, Martin.
You mean admired by 90 plus percent of the American public and a holiday for his birthday?
You just can’t please some people, especially Republicans. Obama is trying to help, get it? Lowering monthly mortgage payments could keep thousands of people OFF welfare. I thought this is what you wanted. If anyone but Obama had proposed this you would be singing his/her praises. Do you have a problem with less fortunate people getting help?
He is not trying to help, if he was he would have tried this a couple years ago. He is doing this before the election to try to get people to vote for him. He is trying to buy the vote using taxpayers money.
He was a little busy back then passing Obamacare, which will benefit ALL of us. This includes YOU.
obamacare is one of the biggest taxes ever placed on us, so far my mothers medicare has decreased in coverage and increased in price. I want coverage for me and my family but not at the price it will be at.
So you call giving thousands of Illegals special rights in this country to take our jobs good. You need to find another country to live in soon. He is creating a racial war.
Please think before you write, David. Most of Obamacare hasn’t even taken effect yet. Could you give it a minute or two? Sheesh!
Matt do you think you could take the Bow Wow add down now? I have seen enough Bow Wow for a lifetime.
I’m waiting for that movie coming out next month. It’s called 2016 and it is suppose to let people know who the real Obama is.
Nearly half of the population is not represented on a taxable return and almost exactly the same proportion that lives in a household where at least one member receives some type of government benefit. Wow, who would have thought?
We are becoming a 50–50 nation — half of us paying taxes and the other half receiving the benefits and laying on their asses. We need to derail this gravey train and soon before its too far gone.
What B.S. this is. He is just trying to buy more votes with other peoples money. It would be great if this was to ever happen. I looked at the current program but you have to be in the poverty level to qualify and if you are you have no business trying to own a house anyway. Dodd/Frank created this housing mess with support from all the democrats but no one wants to remember that now.
Dodd/Frank/Clnton with a democratic congress but yet it’s all Bush’s fault.
Nice SCAM ad.
Why doesn’t the Free Lunch King get some employment going?
These loans must be no interest, no payment loans. Just sign and let other people pay for your crap.
He wants to help home owners refinance their loans and I heard a couple weeks ago that he wanted to do another stimulus to pay off peoples college loans and he wants all this done before november, does anybody see a bribe in this?