A few days ago President Barack Obama announced his plan to stimulate the economy. This plan, if approved, would allow potential new homeowners to purchase a home with a 4.5% mortgage rate. Also called for is the chance for current homeowners to refinance at that same 4.5% mortgage rate. I have included some key points that effect homeowners below. This plan would:

-Allow homeowners who bought their home at a higher mortgage rate to refinance into a low 4.5% rate and save money every month on mortgage payments.

-Make modifying existing and new loans easier to do for all homeowners.

-Keep interest rates locked in at a rate of 4.5% which is very low.

-Not offer and take away and existing help or government assistance to mortgage market speculators who profit on the financial hardships of homeowners.

-Save the housing market by letting homeowners refinance at this 4.5% rate instead of face a costly foreclosure.

Responsible homeowners who make their payments on time and in full are having a harder time paying their mortgage every month. Giving these homeowners a chance to refinance their mortgage at the proposed by Barack Obama a low 4.5% mortgage rate. A lot of people have also recently gone through layoff at their jobs and the Barack Obama stimulus plan could help them. This would increase their standard of living and decrease the chance of foreclosure. Also, property values could go up as more homes are bought or sold.

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