To stimulate our economy

What would happen if the $700B financial "bailout" money was split up among homeowners of mid to lower incomes instead?

Why can't our government step in and reset mortgage rates at say 4%?


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when we visit with folks this holiday season. It is fun to watch the light dawn on their faces.

...how many low to mid income homeowners there are in the USA?

I'd love to do the math on the $700B.

That would be 60% of Americans from the lowest income ranges on up.

3%?

10%?

20%?

I assume that's a fixed-rate mortgage, isn't it?

monthly payment would drop if I refinanced at 4.5% with 2 points. About an 18 month payback.

Think I will wait till I cant 4%. Hope to see it!

The banks have enough upside-down mortgages on their books as it is.

Didn't they say the property had "to appraise"?

than the value of the refinance. They did not explicitly state equity requirements on their website that I saw anyway. But I am sure that there are some appraisal requirements.

I bought the house in 1998 and refinanced with them at the end of 2002. Have a 20 year at 5.75% now, and plan to take a $125k 15 or 20 year on a house that would probably sell for $250-$275 in todays market.

The rates are as low as they've been in a VERY long time.

as you mention - many many many people will be denied a refinance since their mortgages are underwater. It is a crime since they are the once who need it most.

Isn't that kinda like an oxymoron? If they are low income, they probably can't afford to own a home in the first place. The costs of insurance, taxes, and maintenance on today's homes is outrageous, and I don't see how low income households can even afford a home.

This economic downturn has hit every segment of the population. If you give money to any one group, the others will complain that they did not get theirs.

So, what you do is create a program that satisfies everyone, the rebuilding of America's infrastructure. Everyone uses it, and everyone benefits. Who could complain about that? Four to five million jobs would surely give our economy a jump start!

No more giveaways! That only creates debt that has to be repaid.

with the lowest productivity?

It's a rhetorical question, but I'm not especially eager to directly subsidize people just because they bought a house...partly because it's unfair on those who were cautious and stayed out of an overheated property market rather than take on too much risk.

Maybe it's their job situation that requires mobility.

Some folks don't have the motivation to keep up a home.

A number of them move often to keep one step ahead of either their responsibilities or their creditors.

Others just can't seem to stay in one place very long.

Getting a place to call your own, building some equity and making a place your home just need to be their own motivators, although there are some good programs which help people who are more motivated to get a starter home.