President Obama Touts Home Refinancing

After a meeting with homeowners this morning, President Barack Obama encouraged Americans to refinance their mortgages, stating that historically low interest rates could help save families about $1,600 a year. Between 7 million and 9 million homeowners might qualify to refinance, President Obama added.

Interest rates are, in fact, the lowest since 1971, and the 30-year rate is currently at 4.78 percent. These declines, the President said, can be directly linked to recent actions taken by the Federal Reserve and his Administration. Last month, his $75 billion mortgage relief plan officially launched. Interested homeowners can find out if they qualify for aid by visiting the government-run Web site MakingHomesAffordable.gov.

In the past month, mortgage refinancings increased a total of 88 percent. These lower rates are prompting the big uptick in refinancing, though there are still many more Americans who can be assisted.

The President urged homeowners to be careful when working with lenders because mortgage fraud is also increasing. If you are asked to pay money up-front before a refinancing, you're likely working with a scam artist.

(Source: Wall Street Journal)
- Jill Kipnis, Move Trends Editor
Email: Jill Kipnis@Move.com

By: Jill Kipnis

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