Cheaper mortgages for all

President Obama announced a plan that would help all homeowners to refinance their homes and take advantage of these historically low rates.  In a bid to help the struggling economy, the Federal Government would step in to not only help those who have a Fannie Mae or Freddie Mac mortgage, but also homeowners who have private mortgages.

The goal is to help those responsible homeowner’s who are current on their mortgage and give them some relief and possibly remove them from an existing high interest loan.  The White House says that on average households who participate in this plan could save about $3000 per year. There is also a plan to help lower costs for those with government backed mortgages from Fannie Mae and Freddie Mac.

The funds to help make this program possible likely is coming out of the Proceeds of the case against large banks for using robo-signing during the crisis.  The money would help defray cost for refinancing and may also help homeowners that suffered abusive lending practices or were wrongly foreclosed upon.