President Barack Obama recently pushed a bill for helping struggling Americans to refinance their mortgage in the hope that they can make the payments and eventually keep the house. All good and dandy but the problem is, many lawmakers think this type of a hand out goes against the mores of what United States stand for and that is a government should not take over a citizens life and teach him/her how to live.
If the times are bad and governments go all the way to interfere in a private citizens life, imagine what the same rules would mean when the times are good. Basically the government is robbing Peter to pay Paul.
So the Nevada lawmakers especially are lodging protests over the proposal but PO (President Obama) is showing no signs of backing out. In his network prime time interview with the fourth estate, Obama was asked a question on if he thought anytime his proposal was skewed. What you should know is that this is one financial issue that is uniting a lot of opposing parties, Democrats and Republicans alike.
Check out this article, for comprehensive information on Obama Mortgage plan 4.5.
But you gotta give it to President Obama as he has shown no sign of flap ability. What he plans to do is, reducing the tax cuts for those individuals earning more than $250,000. This measure alone would fill up the federal coffers by $300 billion. And guess what can be achieved by this money? The health care reform.
So basically when you have this kind of news coming out of Washington, the mortgage rates are falling down as well. Specifically, Fed Reserve announced that it would buy another portion of $750 billion in mortgage backed securities. According to the pundits in the market, such announcements are leading to a great fall and causing considerable havoc.
Rates on a 30 year, fixed-rate loan dropped by almost 0.375 of a %. This took the percentage rate to 4.625 percent. All this drop was within an hour. It is my opinion that lower mortgage rates and new refinance guidelines from the federal government will go a long way in helping many people get the best deal on their homes.