President Obama Proposes A Plan to Help Many Struggling Homeowners

The Obama administration wants to help the housing market - and provide an economic shot in the arm - by letting all homeowners in Jersey and across the country refinance their mortgages at lower interest rates - even if they’ve had a recent credit problem, or owe more than their homes are worth.

During a speech today in Virginia, President Obama proposed expanding the Home Affordable Refinance Program, saying “what this plan will do is help millions of responsible homeowners who make their payments on time but find themselves trapped under falling home values or wrapped in red tape…it will give every responsible homeowner in America the chance to save about 3 thousand dollars a year on their mortgage by refinancing at historically low rates.”

Expanding the program would be paid for by having large banks pay a fee.

Right now the Home Affordable Refinance Program only includes borrowers with loans backed by government-affiliated mortgage giants Fannie Mae and Freddie Mac. Some economists estimate that expanding it to include all borrowers could allow up to 10 million homeowners to refinance, giving the economy a significant boost.

Obama also wants lawmakers to adopt a Homeowners Bill of Rights – to help families better understand what to look for when shopping for a mortgage