During President Obama's speech on Tuesday he addressed the long-coming mortgage refinance program aimed for underwater responsible homeowners. The new program will be designed to help homeowners who have not been able to receive assistance because they are current on payments and do not have a government-backed mortgage.
"Part of our rebuilding effort must also involve our housing sector. Today, our housing market is finally healing from the collapse of 2007. Home prices are rising at the fastest pace in six years, home purchases are up nearly 50 percent, and construction is expanding again," said President Obama.
Obama's plan is to extend current refinancing options to privately financed loans and step up their efforts to restore the housing market. However, this plan is not new and it was also proposed to Congress back in September, and also in Obama's 2012 State of the Union Address.
The current program allows underwater loans backed by Fannie Mae or Freddie Mac to qualify for streamlined refinance options. Obama is urging Congress to allow this program to reach all homeowners to avoid more future defaults. This new program needs to be approved quickly as mortgage rates are still near record lows! At the end of last week the average interest rate for a 30-year fixed mortgage was at 3.53%.
"Too many families who have never missed a payment and want to refinance are being told no. That’s holding our entire economy back, and we need to fix it. Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill. Let’s streamline the process, and help our economy grow," Said Obama.