New Bill Would Make it Easier to Payoff Mortgage Debt
A new amendment to the stimulus package proposes to lower monthly mortgage payments for many homeowners by giving them the opportunity to refinance to a low 4-4.5% loan.
Fox News reports:
“Under the “Fix Housing First Act” — an amendment spearheaded by both McConnell and Republican Sen. Lamar Alexander of Tennessee — new and refinanced mortgages would be available to homeowners for 4 to 4.5 percent.
The amendment will require banks to issue these lower fixed-rate mortgages on primary residences, “both for new homes purchases and for refinances mortgages for responsible homeowners.”
If the amendment is approved, homeowners would save an average of $167,760 over the course of a traditional 30-year loan. Homeowners who apply the savings to payoff mortgage debt early could shave many years off their repayment period and save even more than projected.