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Obama Refinance Plan – Are Low Mortgage Rates Helping?

Posted on | November 4, 2009 | No Comments

The Obama refinance plan was created to help home owners stay in their homes and avoid foreclosure.  One way that this can be done is to refinance at a low mortgage rate.  The president and Federal Reserve Bank chairman Ben Bernanke have done a great job of keeping mortgage interest rates extremely low but has this helped to repair the economy and keep people in their homes?

This is an issue that can be debated for days without avail.  Foreclosures are at an all time high but the housing market has stabilized.  Many analysts feel that the housing market has stabilized because of the first time home buyers tax credit but nothing has been proven.  This tax credit is set to expire on November 30th but an extension is highly likely.

If the tax credit is not extended then we would find out quickly if this was the reason for the stabilization in housing prices.  WIth this being such a big issue it is unlikely we will find out soon because Washington is set to vote on the extension very soon and many leaders feel that it is almost a guarantee that we are going to see the extension voted into law.

With home price stabilizing the low mortgage rate market is working right?  Well, why are foreclosures at an all time high then?  This is something that many perma-bears will point out when politicians think we are out of the recession.  If people cannot pay for their mortgages then how are they going to pay for anything else?

There is very little argument that now is one of the best times in history to refinance your current home loan.  If you have been on the fence about refinancing it might be time to jump off and hit the ground running.  Mortgage interest rates remain below 5% and mortgage lenders are willing to help you with the mortgage application process.  Get out here and save money by refinancing.

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Author: Alan Lake

Category: Obama Mortgage Plan

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