Plans to stimulate the market may include a huge refinancing gain for homeowners in order to stimulate the economy and it may not cost anything. Well, we’ll see about that. There are several proposals on the table. Everything is still up in the air so the two people who spoke to the reporter for this article asked to remain anonymous because they are not supposed to be speaking about it. One proposal could mean that millions of homeowners of government-backed mortgages will be allowed to refinance at today’s lower rate of four percent.
But will this be enough to address the main reasons for foreclosures which are 1) homes worth less than their mortgages and 2) Unemployment?